Nigeria Poised to Become Africa’s Third-Largest Economy by 2026

Nigeria is projected to reclaim its position as the third-largest economy in Africa by 2026, according to forecasts supported by the International Monetary Fund (IMF).

This anticipated comeback, following a period where Nigeria had slipped to fourth place, is largely attributed to the Federal Government’s ongoing economic reforms, rising oil revenues, and a resulting boost in investor confidence.

The IMF specifically forecasts Nigeria’s nominal GDP to reach approximately $334.3 billion by 2026, placing it behind South Africa and Egypt.

The anticipated resurgence is being driven by several critical factors. Key economic reforms, notably the removal of fuel subsidies and the unification of the exchange rate, are credited with fundamentally improving the overall economic outlook and fiscal environment.

Furthermore, rising oil revenues, resulting from increased oil production and a stronger-than-expected effort to combat oil theft, are projected to significantly boost government finances and attract investment, providing essential support for economic growth.

The combination of these fiscal improvements and a more stable economic environment is also leading to a renewed sense of confidence among international investors.

While the overall growth rate remains modest, the positive outlook is fundamentally driven by currency stabilization and a renewed focus on resource generation to fund critical infrastructure projects.