The International Monetary Fund (IMF) has revealed that Nigeria is not among Africa’s fastest-growing economies, naming Benin Republic, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda as the countries currently driving the continent’s economic expansion. The IMF attributed their success to fiscal reforms, sound economic policies, and steady investments in infrastructure and manufacturing.
IMF’s African Department Director, Abebe Selassie, made the disclosure during the launch of the latest Regional Economic Outlook for Sub-Saharan Africa on Thursday. He said the region’s growth is expected to hold steady at 4.1 percent in 2025, with a slight rise anticipated in 2026 as several economies consolidate macroeconomic stability. Selassie added that global challenges such as weaker demand, volatile commodity prices, and tighter financial markets continue to test Africa’s resilience.
Although Nigeria’s growth forecast was recently revised upward from 3.4 percent to 3.9 percent in 2025 the IMF stressed that the country still lags behind regional leaders. The fund urged Nigeria to intensify structural reforms, stabilize power supply, boost industrial output, and diversify its non-oil revenues to reach its full economic potential. The National Bureau of Statistics had earlier reported that Nigeria’s GDP grew by 4.23 percent in the second quarter of 2025, showing modest gains across oil and non-oil sectors.
The IMF also raised concerns over rising financial vulnerabilities across Sub-Saharan Africa, warning that governments’ growing reliance on domestic banks for borrowing could threaten financial stability. It noted that in many African nations, including Nigeria, about half of public debt is now held by domestic institutions a trend that increases risks to the banking system.
Selassie urged African governments to focus on boosting domestic revenue through modern tax systems, digitalization, and stronger institutional capacity. He emphasized that sustained fiscal reforms, transparency, and improved governance will be crucial to safeguarding financial stability and driving inclusive economic growth across the continent.