The International Monetary Fund has projected that Nigeria’s economy will grow by 4.4% this year, while warning that high inflation remains a major risk to the outlook.
In its latest assessment released Tuesday, the IMF said growth would be supported by improvements in the services sector and a gradual recovery in oil production, even as structural challenges continue to weigh on the economy.
The Fund cautioned that inflationary pressures — driven by higher food prices, exchange rate volatility and energy costs — could undermine household purchasing power and slow economic gains if not addressed.
It urged Nigerian authorities to sustain fiscal and monetary reforms, strengthen revenue mobilization and expand social safety nets to protect vulnerable groups from rising living costs.
Nigeria has faced persistent inflation in recent months, prompting tighter monetary policy by the central bank as the government pushes broader economic reforms aimed at stabilizing growth.
