Nigeria is set to overtake Algeria as Africa’s third-largest economy in 2026, according to the International Monetary Fund’s World Economic Outlook. In 2025, Nigeria’s GDP stood at about $285 billion, ranking fourth in Africa behind South Africa, Egypt and Algeria.
The IMF projects that Nigeria’s economic output will rise to $334 billion in 2026, surpassing Algeria’s $284 billion. Growth is expected to be driven by higher oil production, improved foreign exchange liquidity, and ongoing economic reforms, including petrol subsidy removal, exchange-rate liberalisation and fiscal adjustments.
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The Fund also raised Nigeria’s projected economic growth rate for 2026 to 4.4 percent from 4.2 percent. The World Bank has similarly increased its forecast to 4.4 percent, up from 3.7 percent, reflecting optimism that recent reforms will support medium-term expansion despite short-term inflationary pressures.
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