The International Monetary Fund (IMF) has projected that Nigeria’s total investment will climb to 20 percent of gross domestic product (GDP) by 2026, the highest share recorded since 2020. The forecast comes even as the fund expects the country’s fiscal deficit to widen over the same period.
According to the IMF, the rise in investment reflects a strengthening of private sector activity and ongoing infrastructure spending, which together are set to push the investment‑to‑GDP ratio back toward pre‑pandemic levels.
In contrast, the IMF’s fiscal outlook signals a growing shortfall between government revenues and expenditures. The widening deficit suggests that Nigeria’s public finances will face increasing pressure, despite the positive investment trend.
Nigeria, Africa’s most populous nation and its largest economy, has been grappling with high inflation, currency volatility and a slowdown in oil revenues. The IMF’s dual outlook underscores the divergent paths of private investment growth and public fiscal balance.
Policy makers are expected to address the fiscal gap while sustaining the momentum in investment, a balance that will be crucial for maintaining economic stability and fostering growth in the coming years.
<small>Source: AllAfrica Nigeria — read the original story there.</small>
