Nigeria’s GDP is expected to reach $334 billion in 2026, overtaking Algeria as Africa’s third-largest economy, according to the International Monetary Fund (IMF).
According to the fund’s World Economic Outlook (October 2025), Nigeria ranked fourth in Africa with a GDP of roughly $285 billion at current prices, after South Africa, Egypt, and Algeria in 2025.
Increased oil production, improved foreign exchange (FX) liquidity, and the results of ongoing economic reforms, such as the elimination of fuel subsidies, liberalization of exchange rates, and fiscal adjustments, all of which are intended to support medium-term growth despite short-term inflationary pressures, were all cited by the IMF as reasons for Nigeria’s projected economic growth.
Algeria is expected to produce $284 billion this year, while Nigeria’s GDP is expected to increase to over $334 billion.
Nigeria’s economy is anticipated to maintain its current resilience with a good growth forecast, according to IMF projections, which show a change in the review year.
With a predicted GDP of $443 billion in 2026, South Africa is predicted to continue to be Africa’s largest economy, followed by Egypt with $399 billion.
With a GDP of $426 billion, South Africa maintains its position as Africa’s greatest economy in 2025. Egypt comes in second with $349 billion, and Algeria comes in third with roughly $288 billion.
Due to rebasing efforts, currency devaluations, and other macroeconomic issues impacting major African economies, Nigeria’s economic standing has changed recently.
The IMF increased the nation’s 2026 economic growth prediction from 4.2% to 4.4% earlier this year.
Additionally, the World Bank increased its growth prediction for Nigeria from 3.7% in mid-2025 to 4.4% in 2026.
According to the IMF’s projection last week, Nigeria will rank sixth internationally and among the top 10 countries in terms of its contribution to global real GDP growth in 2026, with a 1.5% growth rate.
Additionally, the development put the nation ahead of a number of developed and growing countries, such as Saudi Arabia (1.7%), Vietnam (1.6%), Brazil (1.5%), and Germany (0.9%).
The United States is predicted to contribute 9.9%, Indonesia 3.8%, India 17.0%, and Turkey 2.2%, while China is predicted to continue to be the largest contributor to global growth at 26.6%.
This year, China and India are expected to account for 43.6% of the world’s economic growth.
The Asia-Pacific area was predicted to dominate the global economy and provide close to half of all economic growth, according to the IMF research, which also alluded to the region’s ongoing economic momentum.
Elon Musk, the CEO of Tesla, stated, “The balance of power is changing,” in response to the IMF study.
Nigeria’s true growth projection, notwithstanding the current obstacles, is estimated to be between 3 and 4 percent.
Trade, telecoms, energy, and services all expanded as a result of the nation’s consumption-driven boom.
The county’s position as a major development engine among emerging economies and its remarkable endurance in the face of persistent domestic and international economic difficulties were also highlighted in the list.
According to the IMF research, China and India are becoming major contributors to global economic expansion.
The Eurozone as a whole contributes two percent to global growth. It is anticipated that developing markets would grow by 4.2% while advanced economies will grow by 1.8% overall.
