Nigeria Set to Surpass Algeria as Africa’s Third-Largest Economy, IMF Forecasts $334bn GDP

According to the International Monetary Fund (IMF), Nigeria’s GDP is expected to reach $334 billion in 2026, surpassing Algeria as Africa’s third-largest economy.

According to the fund’s World Economic Outlook (October 2025), Nigeria ranked fourth in Africa in 2025 with a GDP of roughly $285 billion at current prices, after South Africa, Egypt, and Algeria.

Increased oil production, improved foreign exchange (FX) liquidity, and the results of ongoing economic reforms, such as the elimination of fuel subsidies, the liberalization of exchange rates, and fiscal adjustments, all of which are intended to support medium-term growth despite short-term inflationary pressures, were all linked by the IMF to Nigeria’s projected economic rise.

Nigeria is expected to surpass Algeria, whose output is predicted to reach $284 billion this year, with a GDP of over $334 billion.

According to IMF forecasts, the review year will see a change, with Nigeria’s economy continuing to maintain its resilience and have a promising growth outlook.

With a projected GDP of $443 billion in 2026, South Africa is predicted to continue to have the largest economy in Africa, followed by Egypt at $399 billion.

With a GDP of $426 billion, South Africa continued to be the continent’s largest economy in 2025. Egypt came in second with $349 billion, and Algeria came in third with roughly $288 billion.

Because of currency devaluations, rebasing efforts, and more general macroeconomic issues impacting major African economies, Nigeria’s economic standing has changed recently.

The IMF raised the country’s 2026 GDP growth estimate from 4.2% to 4.4% earlier this year.

In addition, the World Bank increased its growth estimate for Nigeria from 3.7% in mid-2025 to 4.4% in 2026.

The IMF predicted last week that Nigeria will rank sixth internationally and among the top 10 countries in terms of its contribution to real GDP growth, with a 1.5% growth rate in 2026.

Furthermore, the development put the nation ahead of a number of developed and growing countries, such as Saudi Arabia (1.7%), Vietnam (1.6%), Brazil (1.5%), and Germany (0.9%).

At 26.6%, China is predicted to continue to be the biggest contributor to global growth, followed by India (17.0%), the United States (9.9%), Indonesia (3.8%), and Turkey (2.2%).

43.6% of the world’s economic growth is expected to come from China and India this year.

In keeping with the region’s ongoing economic momentum, the IMF study also alluded to the Asia Pacific region’s supremacy, which was predicted to contribute close to 50% of world economic growth.

“The balance of power is changing,” Tesla CEO Elon Musk stated in response to the IMF study.

Sources claim that despite present difficulties, Nigeria’s true growth forecast stays at about 3–4%.

economy in trade, telecoms, energy, and services was facilitated by the nation’s consumption-driven economy.

The ranking also highlighted the county’s exceptional resilience in the face of persistent domestic and international economic issues, as well as its role as a major growth generator among rising economies.

The IMF report demonstrated how China and India were becoming key players in the expansion of the world economy.

Together, the Eurozone contributes two percent to global growth. Emerging markets are expected to grow by 4.2%, while advanced economies as a whole are expected to grow by 1.8%.