The projection is an upgrade from the IMF’s initial estimate
of 3 percent, according to the World Economic Outlook (WEO) unveiled at the
annual meetings in Washington, D.C, on Tuesday.

IMF also projected that Nigeria’s economic growth will
further rise to 4.2 percent in 2026.

Speaking at a news conference in Washington DC, Deniz Igan,
IMF’s division chief, research department, said the revised outlook for 2025
reflects reduced uncertainty and the limited impact of United States’ tariffs
on Nigeria, given the country’s limited exposure.

Igan also cited the appreciation of the exchange rate since
July and rising investor confidence as contributing factors.

“And since July, we also had the exchange rate appreciating,
financial conditions strengthening with the increase in investment confidence,”
she said.

“And on top of that, we also have fiscal stance remaining
supportive, and hydrocarbon growth was also revised up with higher oil
production on increased security.”

IMF’s projection is lower than the federal government’s
forecasted growth rate of 4.6 percent for 2025 and 4.4 percent for 2026.

Also, the IMF had earlier projected that the global economic
growth will rise by 3.2 percent this year, with a slight slowdown to 3.1
percent expected in 2026.