The Digest:
According to the International Monetary Fund’s World Economic Outlook data, Nigeria is projected to overtake Algeria as Africa’s third-largest economy in 2026. Nigeria’s GDP, estimated at $285 billion in 2025, is forecast to rise to $334 billion, surpassing Algeria’s projected $284 billion. This shift is attributed to a rebound in economic output driven by higher oil production, improved foreign exchange liquidity, and the impact of ongoing reforms like subsidy removal and exchange-rate liberalization.
Key Points:
- This projection signals potential for improved national economic standing, which could influence global investment perceptions of Nigeria.
- Economic growth driven by oil and reforms may not immediately alleviate cost-of-living pressures for ordinary citizens facing inflation.
- The anticipated climb highlights the relative impact of Nigeria's domestic policy adjustments compared to other major African economies.
- It reflects confidence from international financial institutions in the medium-term direction of Nigeria’s economic management.
- The timing matters as it shows a potential recovery from recent macroeconomic headwinds and currency devaluations that affected its regional ranking.
Sources: The Cable, Nairametrics
