Nigeria targets 7% growth, expects to outperform IMF’s 4.3% forecast

Nigeria aims to achieve an economic growth rate of 7% in 2027, surpassing the International Monetary Fund's (IMF) forecast of 4.3% for the same year. The Federal Government is striving to boost reforms and curb inflation to foster business activity. This target was revealed by the Minister of Finance, Taiwo Oyedele, at a news conference held during the 2026 World Bank/IMF Annual Meetings in Bangkok, Thailand.

Oyedele expressed confidence that Nigeria's economy could outperform the IMF's forecast due to the government's intensified reforms. The minister dismissed the IMF's growth projection as conservative and highlighted that the government intended to pair Central Bank of Nigeria's (CBN) monetary policy measures with fiscal interventions to accelerate economic expansion.

Inflation, driven largely by food, energy, and logistics costs, is a significant concern for Oyedele. The aim is to reduce inflation to single-digit levels, making credit more affordable for businesses.

Lowering borrowing costs could potentially fuel economic growth, as businesses currently grappling with lending rates near 30% could benefit from more accessible credit. Oyedele cited improvements in foreign exchange stability, attributing the naira's steadiness and appreciation to the CBN's efforts. He also pointed to foreign exchange reforms and modifications to Nigeria's tax system within two years as pivotal policy shifts as part of the broader reform agenda.

Describing the government's reform initiative as "Nigerian Rising," Oyedele urged Nigerians to focus on the country's progress, international recognition, and emerging economic opportunities, instead of dwelling on negative headlines. He emphasized that both investors' interests and public welfare could be met through sustainable economic policies that benefit citizens while attracting investment.

The minister cautioned that reversing key reforms, particularly the removal of fuel subsidies, could lead to capital flight, weaken the naira, and generate additional economic pressures.

Earlier this month, Nairametrics reported that the IMF had raised Nigeria's 2026 economic growth forecast to 4.2% from 4.1% in its October 2026 World Economic Outlook, while maintaining its projection of 4.3% growth for 2027. The IMF's expectations remain below Nigeria's 7% growth ambition, emphasizing the disparity between the country's target and the Fund's predictions for the economy over the next two years.