Nigeria missing as IMF names Africa’s economic growth champions

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Nigeria has been left out of the International Monetary Fund’s (IMF) latest list of Africa’s fastest-growing economies, as Benin Republic, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda took the spotlight as the continent’s new growth champions.

The ranking was released on Thursday during the presentation of the IMF’s Regional Economic Outlook for Sub-Saharan Africa in Washington DC by the Fund’s Director for the African Department, Abebe Selassie.

Selassie said the five countries are now among the world’s fastest-growing economies, crediting their progress to strong policy reforms, stable macroeconomic management, and investments in infrastructure and manufacturing.

 “Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda are now among the fastest-growing economies globally,” he said. “Their progress reflects consistent policy choices and reform momentum.”

While the IMF projects Sub-Saharan Africa’s growth to reach 4.1 per cent in 2025, Nigeria’s performance remains modest, despite recent upgrades to its outlook. The Fund had in July raised Nigeria’s growth forecast to 3.9 per cent for 2025, citing gains from oil recovery, better fiscal coordination, and investor optimism.

However, Nigeria’s pace still lags behind its regional peers. The IMF urged the Tinubu administration to deepen structural reforms, expand non-oil revenues, stabilise the exchange rate, and sustain efforts to curb inflation, which, though declining, remains in double digits.

Selassie warned that most African governments, including Nigeria, face mounting debt pressures and increasing dependence on domestic banks to fund public spending, a move he described as risky for financial stability.

“With limited access to external finance, countries are turning to domestic banks for funding, tightening liquidity and raising exposure to sovereign risks,” he cautioned.

The IMF called for improved tax mobilisation, transparency, and public spending discipline, saying these would help countries navigate tightening global financial conditions and strengthen resilience against external shocks.

Despite its absence from the IMF’s top-performers list, Nigeria received cautious praise for its ongoing policy shifts. The Fund acknowledged that recent exchange-rate unification and monetary tightening have started to stabilise the economy, with inflation easing from over 30 per cent last year to about 23 per cent.

Tobias Adrian, Director of Monetary and Capital Markets, noted that Nigeria’s tougher monetary stance has boosted credibility:

 “Nigeria’s exchange-rate adjustment and tighter policy stance are restoring balance,” he said. “These are tough but necessary measures.”

The IMF’s Fiscal Affairs Division Chief, Davide Furceri, also lauded the government’s tax reforms and spending control measures, saying they align with long-term fiscal sustainability.

“Nigeria has taken important steps in tax and expenditure reform,” Furceri said. “The direction of policy is right, but consistent implementation is crucial.”

Selassie, however, cautioned that Africa’s recovery remains fragile, threatened by high borrowing costs, weak export revenues, and climate-related shocks.

 “The region’s resilience is commendable, but it’s not enough,” he said. “Sustained reforms are needed to turn recovery into lasting prosperity."

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