The International Monetary Fund (IMF) has forecasted that Nigeria’s economy will reach $1.85 trillion by 2029 in terms of Purchasing Power Parity (PPP).
The prediction suggests a significant growth trajectory for Nigeria over the next five years.
According to IMF data, Nigeria’s Gross Domestic Product (GDP) in PPP terms has shown a steady increase, growing from $1.36 trillion in 2023 to an anticipated $1.85 trillion by 2029.
GDP is widely recognized as the most comprehensive measure of a country’s economic activity, while PPP adjusts for differences in price levels between countries, allowing for more accurate international comparisons.
The data indicates a consistent growth trend, with a notable 5.5 per cent increase expected in 2029.
Additionally, the IMF projects that Nigeria’s share of global GDP based on PPP will reach 0.78 per cent by 2029, up from 0.77 per cent in 2023. This demonstrates a steady, albeit slow, expansion of Nigeria’s economy.
Despite facing significant challenges, including a recession in 2020 due to the COVID-19 pandemic and declining oil prices, Nigeria has made efforts to diversify its economy, invest in infrastructure, and attract foreign investment.
The efforts are reflected in the positive economic outlook provided by the IMF.
Economist Shadrach Israel commented on the report, stating, “The IMF reports indicated that the government’s reforms and initiatives have contributed to the country’s economic growth.”
He further noted that the steady growth trend of Nigeria’s GDP in PPP terms over recent years indicates a recovery and ongoing development.
From 2024 to 2028, Nigeria’s GDP in PPP terms is expected to grow as follows:
$1.44 trillion in 2024
$1.51 trillion in 2025
$1.587 trillion in 2026
$1.67 trillion in 2027
$1.759 trillion in 2028
“The IMF’s prediction of Nigeria’s economic growth is a positive sign for the country’s future, indicating a potential for increased economic prosperity and development,” Israel concluded.
Recall that the International Monetary Fund (IMF) recently recommended to the Federal Government of Nigeria the complete phase-out of electricity subsidies in the country, aligning with its earlier call for the removal of fuel subsidies in May 2023.
The advice comes in the wake of economic challenges faced by Nigerians since the elimination of fuel subsidies.
In its ‘Post Financing Assessment (PFA)’ report, the IMF acknowledged the hardship experienced by Nigerians and suggested that the government’s move to restore macroeconomic stability should include the removal of both fuel and electricity subsidies.
