Nigeria ranked as Africa’s fourth-largest economy in 2025, but is projected to climb to third position in 2026, according to data from the International Monetary Fund (IMF).
Data from the IMF’s World Economic Outlook (October 2025
edition), accessed via the Fund’s datamapper, showed Nigeria’s gross domestic
product (GDP) at current prices stood at about $285 billion in 2025, placing it
behind South Africa, Egypt and Algeria.
South Africa topped the African ranking with a GDP of about
$426 billion, followed by Egypt at $349 billion, while Algeria ranked third
with $288 billion.
However, the IMF forecasts that Nigeria will overtake
Algeria in 2026 as economic output rebounds, driven by higher oil production,
improved foreign exchange liquidity and the impact of ongoing economic reforms.
According to the IMF’s projections, Nigeria’s GDP is
expected to rise to $334 billion, putting it ahead of Algeria ($284 billion)
and making it Africa’s third-largest economy, behind South Africa ($443
billion) and Egypt ($399 billion).
The Fund’s outlook reflects expectations that recent
reforms, including petrol subsidy removal, exchange-rate liberalisation and
fiscal adjustments, will support medium-term growth, despite short-term
inflationary pressures.
Africa’s largest economy’s position has shifted in recent
years amid currency devaluations, rebasing exercises and macroeconomic
headwinds across major economies on the continent.
On January 19, the IMF reviewed its forecast for Nigeria’s
economic growth rate upward to 4.4 percent in 2026.
The Bretton Woods organisation revised the rate upward from
its initial projection of 4.2 percent.
On January 13, the World Bank also increased its projection
for Nigeria’s economic growth rate for 2026 to 4.4 percent from the 3.7 percent
forecast in June 2025.
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