Unstable crude oil prices have forced the International Monetary Fund (IMF) to downgrade Nigeria’s economic growth forecast for 2025 to 3.0 per cent.

According to the IMF’s April 2025 World Economic Outlook (WEO) report, which was released on the sidelines of the ongoing Spring Meetings of the IMF and the World Bank in Washington, DC.

This represents a 0.2 percentage point reduction from the Fund’s previous projection of 3.2 per cent.

In sub-Saharan Africa, the report said economic growth in the sub-region is expected to decline slightly from 4.0 per cent projected in 2024 to 3.8 per cent in 2025, before a possible gradual recovery to 4.2 per cent next year.

The report said: “Among the larger economies, the growth forecast for Nigeria is revised downward by 0.2 percentage point for 2025 and 0.3 percentage point for 2026, owing to lower oil prices.”

Also, the report downgraded South Africa’s forecast by 0.5 percentage point for 2025 and 0.3 percentage point for 2026, a reflection of the slowing momentum from what it termed ‘weaker-than-expected 2024 performance’.

It hinged the forecast on the deteriorating sentiment due to heightened uncertainty, intensification of protectionist policies, and a deeper slowdown in major economies.