IMF: Nigeria’s economy to hit $1.85trn by 2029

The International Monetary Fund (IMF) has projected Nigeria’s economy will rise to at least $1.85 trillion in purchasing power parity terms by 2029.

PPP is a metric used to compare the value of different currencies and their ability to buy the same things. It is used for comparing economic productivity and standards of living between countries.

The prediction by the Washington-based institution 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 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.

In 2025, the country’s gross domestic product (GDP) in PPP terms is projected to stand at $1.52 trillion and increase to $1.58 trillion in 2026.

IMF projected the growth will continue in 2027 to $1.67 trillion, and $1.75 trillion in 2028.

The data shows a consistent growth trend, with a notable increase of 5.5 percent expected in 2029.

IMF also forecasted Nigeria’s share of global GDP based on PPP to reach 0.78 percent by 2029.

This represents a slight increase from 0.77 percent in 2023, indicating a steady growth trajectory for the country’s economy.

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 percent in May 2023 to 33.69 percent in April 2024, while food inflation has climbed to 40.53 percent from 24.82 percent within the same period.

In the past one year, the GDP growth rate has experienced fluctuations.

In the second quarter (Q2) of 2023, GDP was 2.51 percent (year-on-year) in real terms, falling below the 3.54 percent reported in the same quarter the previous year.

In Q3 last year, the GDP grew by 2.54 percent (year-on-year) in real terms, higher than the 2.25 percent recorded in the third quarter of 2022.

However, in Q4 2023, the GDP growth rate stood at 3.46 percent (year-on-year) in real terms, compared to the 3.52 percent recorded in the corresponding period in 2022.

The fluctuation in growth movement continued in Q1 2024, as the GDP growth rate was 2.98 percent (year-on-year) in real terms, relative to the 2.31 percent recorded in the first quarter of 2023.