Nigeria’s economy to hit $1.85trn, inflation decelerates to 14% – IMF 

In spite of the myriad of challenges facing the Nigerian economy currently, the International Monetary Fund (IMF) in recent statistics said the country’s economy will top $1.85 trillion in 2029, with inflation rate falling to 14 per cent.

The projection shows that hope is not lost for Africa’s largest economy.

According to the IMF data, the inflation rate is anticipated to gradually decrease from 23 per cent in 2025 to 16 per cent in 2026, 15.4 per cent in 2027, and then stabilize at 14 per cent in 2028 and 2029.

This projected stabilization is a positive development for the Nigerian economy, which has been grappling with rising inflation and interest rates.

Nigeria’s economy has faced challenges in recent times, with increasing inflation and interest rates posing significant threats to economic growth and stability.

The Central Bank of Nigeria (CBN) has implemented various measures to tackle these challenges, including raising interest rates during the 295th MPC meeting in May 2024.

Economists have subsequently expressed concerns about the ongoing rise in inflation and interest rates, urging the government to address the underlying factors driving inflation, particularly food and transportation costs.

The prediction by the Washington-based institution suggests a significant growth trajectory for Nigeria’s economy over the next five years.

According to data compiled by the IMF, Nigeria’s gross domestic product in PPP terms has been on the increase and is projected to rise from $1.44 trillion in 2024 to $1.85 trillion in 2029.

In 2025, the country’s gross domestic product (GDP) in PPP terms is projected to stand at $1.52 trillion and increase to $1.58 trillion in 2026.

The IMF projected the growth will continue in 2027 to $1.67 trillion, and $1.75 trillion in 2028.

The data reveals a consistent growth trend, with a notable increase of 5.5 per cent expected by 2029.

IMF also forecasted Nigeria’s share of global GDP based on PPP to reach 0.78 per cent by 2029.

This represents a slight increase from 0.77 per cent in 2023, indicating a steady growth trajectory for the country’s economy.

Nigerians purchasing power has declined due to the high cost of living and soaring inflation.

The inflation rate has been on an upward trend rising from 22.41 per cent in May 2023 to 33.69 percent in April 2024, while food inflation has climbed to 40.53 per cent from 24.82 per cent within the same period.

In the past one year, the GDP growth rate has experienced fluctuations.

In the second quarter of 2023, GDP was 2.51 per cent (year-on-year) in real terms, falling below the 3.54 per cent reported in the same quarter the previous year.