Nigeria’s GDP Growth to Outpace Algeria in 2026, Says IMF

Nigeria is set to reclaim its position as Africa’s third-largest economy in 2026, according to the International Monetary Fund (IMF).

Data from the IMF’s World Economic Outlook (October 2025 edition) shows Nigeria ranked fourth in 2025, with a gross domestic product (GDP) of about $285 billion. South Africa led the continent at $426 billion, followed by Egypt at $349 billion, while Algeria held third place with $288 billion.

However, projections indicate Nigeria’s GDP will rise to approximately $334 billion in 2026, surpassing Algeria’s expected $284 billion. This shift would place Nigeria behind only South Africa ($443 billion) and Egypt ($399 billion).

The IMF attributes Nigeria’s anticipated growth to higher crude oil output, improved foreign exchange liquidity, and the impact of ongoing reforms such as petrol subsidy removal, exchange rate liberalisation, and fiscal restructuring.

While these policies have triggered short-term inflationary pressures, they are expected to strengthen medium-term growth.

Nigeria’s economic ranking has fluctuated in recent years due to currency devaluations, rebasing exercises, and wider macroeconomic challenges across Africa.

Yet, optimism is growing: both the IMF and World Bank recently upgraded Nigeria’s 2026 growth forecast to 4.4 percent, reflecting confidence in the country’s economic rebound.