Nigeria is targeting economic growth of 7%, above the International Monetary Fund’s (IMF) projection of 4.3% for 2027, as the Federal Government seeks to accelerate reforms and lower inflation to support business activity.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Saturday at Nigeria’s news conference on the sidelines of the 2026 World Bank/IMF Annual Meetings in Bangkok, Thailand.
He expressed confidence that Nigeria’s economy could outperform the IMF’s forecast as the government intensifies reforms.
FG targets faster growth, lower borrowing costs
Oyedele described the IMF’s growth projection as conservative, expressing confidence that Nigeria could achieve stronger economic performance.
- “The projections of the IMF have always turned out to be too conservative. This year will not be different,” he said.
The minister said the government planned to complement the Central Bank of Nigeria’s (CBN) monetary policy measures with fiscal interventions aimed at accelerating economic growth.
He identified food, energy and logistics costs as major sources of inflationary pressure, adding that the government was working to address the challenges.
Oyedele said reducing inflation to low single digits could create conditions for single-digit interest rates, making credit more affordable for businesses.
According to the minister, businesses currently facing lending rates close to 30% could achieve stronger growth if borrowing costs declined.
Oyedele warns against reversing economic reforms
The finance minister attributed improvements in foreign exchange stability to the CBN’s efforts, saying the naira had remained stable and was appreciating.
He also cited foreign exchange reforms and changes to Nigeria’s tax system within two years as significant policy developments under the government’s broader reform agenda.
Oyedele described “Nigerian Rising” as the government’s way of communicating the country’s reform progress, growing international recognition and emerging economic opportunities.
He urged Nigerians to look beyond negative headlines and recognise opportunities arising from the country’s economic transformation.
Addressing the relationship between investors’ interests and public welfare, the minister argued that both could be achieved through sustainable economic policies that benefit citizens while attracting investment.
He warned that reversing key reforms, particularly fuel subsidy removal, could trigger capital flight, weaken the naira and create additional economic pressures.
- “Reversing key reforms, particularly fuel subsidy removal, can trigger capital flight, weaken the Naira and create further economic pressures,” he said.
- “Policy decisions must consider their long-term consequences. Reversing reforms can undermine investor confidence and economic stability,” he added.
Oyedele also clarified that discounts offered through commercial pricing arrangements should not automatically be classified as fuel subsidies.
He said the government’s reform programme was designed to strengthen the economy, attract investment and establish the conditions for faster and more sustainable growth.
IMF raises Nigeria’s 2026 growth forecast to 4.2%, projects 4.3% in 2027
Earlier this month, Nairametrics reported that the IMF raised Nigeria’s 2026 economic growth forecast to 4.2% from 4.1% in its October 2026 World Economic Outlook, while retaining its projection of 4.3% growth for 2027.
- In its report, titled Resilience Under Strain, Urgent Choices, the Fund attributed Nigeria’s growth outlook partly to improved macroeconomic stability and favourable terms of trade.
- However, the IMF warned that higher prices of essential goods could worsen poverty and food insecurity, despite the improved growth outlook.
- The Fund also called for targeted, temporary cash transfers and income support to help vulnerable households cope with rising food and energy costs without undermining longer-term economic stability.
The IMF’s projections remain below the Federal Government’s 7% growth ambition, highlighting the gap between the country’s target and the Fund’s expectations for the economy over the next two years.