The International Monetary Fund has projected Nigeria to become Africa’s third-largest economy in 2026.

The IMF’s October 2025 World Economic Outlook shows Nigeria’s GDP at current prices at about $285 billion, behind South Africa ($426 billion), Egypt ($349 billion), and Algeria ($288 billion).

South Africa led the continent with a GDP of roughly $426 billion, followed by Egypt at $349 billion, and Algeria in third place with $288 billion.

The IMF, however, projects that Nigeria will surpass Algeria in 2026, supported by higher oil production, improved foreign exchange liquidity, and the effects of ongoing economic reforms.

According to IMF projections, Nigeria’s GDP is expected to reach $334 billion in 2026, overtaking Algeria ($284 billion) to become Africa’s third-largest economy, behind South Africa ($443 billion) and Egypt ($399 billion).

The Fund’s outlook anticipates that recent reforms—including the removal of the petrol subsidy, exchange-rate liberalisation, and fiscal adjustments—will support medium-term growth, even amid short-term inflationary pressures.

Africa’s largest economies have seen shifting positions in recent years due to currency devaluations, rebasing exercises, and macroeconomic challenges across the continent.

On January 19, the IMF revised its forecast for Nigeria’s economic growth in 2026 upward to 4.4 per cent.

The Bretton Woods institution raised its forecast from an earlier projection of 4.2 percent.

Similarly, on January 13, the World Bank revised Nigeria’s 2026 economic growth estimate to 4.4 percent, up from the 3.7 percent projected in June 2025.