IMF’s 3.0% Growth Projection for Nigeria Unveils Unseen Economic Hassles


The International Monetary Fund (IMF) has revised its World Economic Outlook (WEO) in January 2024, forecasting a 3.0% growth for Nigeria in 2024, slightly lower than the October 2023 estimate of 3.1%. While growth is expected to accelerate to 3.1% in 2025, concerns loom, especially regarding high inflation at an estimated 11.4% throughout 2024.

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Key challenges outlined in the report include potential inflationary pressures eroding purchasing power and suboptimal oil production due to theft and infrastructure impediments. The latter is expected to limit export earnings and government revenue.

Globally, the IMF projects a 3.1% growth in 2024, rising marginally to 3.2% in 2025. Despite this positive adjustment, the figures fall below the historical average, influenced by various factors such as elevated central bank policy rates and sluggish productivity growth.

The report notes a diminished risk of a hard landing globally due to disinflationary trends and steady growth. However, caution is advised against excessively loose fiscal policies, emphasizing the potential impact of various factors on the global economic landscape.

In light of the global economic uncertainties, the IMF recommends strategic policy measures for Nigeria, including maintaining a monetary tightening stance, fiscal consolidation, and structural reforms addressing systemic issues for sustained economic growth.

As per Cowry Research’s 2024 Outlook report, a cautious 3% GDP forecast is maintained for Nigeria. Anticipating challenges, the report emphasizes proactive policies to foster sustained and inclusive economic growth, projecting a 3.25% year-on-year real GDP growth in 2024.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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