The International Monetary Fund (IMF) has projected that Nigeria’s economy will rise to at least $1.85 trillion in purchasing power parity (PPP) terms by 2029.
This forecast suggests a significant growth trajectory for Nigeria’s economy over the next five years.
According to data compiled by the IMF, Nigeria’s gross domestic product (GDP) in PPP terms has been on the increase and is projected to rise from $1.44 trillion in 2024 to $1.85 trillion in 2029. The growth is expected to continue steadily, with notable increases in each year: $1.52 trillion in 2025, $1.58 trillion in 2026, $1.67 trillion in 2027, and $1.75 trillion in 2028. A significant increase of 5.5% is expected in 2029. The IMF also forecasted Nigeria’s share of global GDP based on PPP to reach 0.78% by 2029, indicating a slight increase from 0.77% in 2023.
This steady growth trajectory is a testament to the country’s efforts to diversify its economy, invest in infrastructure, and promote foreign investment. Despite the positive outlook, Nigeria’s purchasing power has declined due to the high cost of living and soaring inflation. The inflation rate has been on an upward trend, rising from 22.41% in May 2023 to 33.69% in April 2024, while food inflation has climbed to 40.53% from 24.82% within the same period.
In the past year, the GDP growth rate has experienced fluctuations. In the second quarter (Q2) of 2023, GDP was 2.51% (year-on-year) in real terms, falling below the 3.54% reported in the same quarter the previous year. The growth rate continued to fluctuate in subsequent quarters, with a notable increase in Q4 2023 and a slight decline in Q1 2024.
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.