Nigeria is expected to become Africa’s third-largest economy in 2026, moving ahead of Algeria, according to the International Monetary Fund (IMF).
In 2025, Nigeria’s economy was worth about $285 billion, ranking it fourth in Africa behind South Africa ($426 billion), Egypt ($349 billion), and Algeria ($288 billion).
The IMF predicts that in 2026, Nigeria’s GDP will rise to $334 billion, while Algeria’s will fall to $284 billion. This growth is expected due to higher oil production, better access to foreign currency, and economic reforms such as removing petrol subsidies, adjusting the exchange rate, and improving government finances.
Although inflation may rise in the short term, these reforms are expected to support steady growth over the next few years.
The IMF recently revised Nigeria’s economic growth forecast for 2026 upward to 4.4%, up from 4.2%. The World Bank also increased its 2026 growth forecast to 4.4%, from 3.7% projected in June 2025.
