Nigeria’s Federal Government has set a 7 per cent economic growth target, exceeding the International Monetary Fund’s (IMF) projection of 4.3 per cent for 2027, as it seeks to accelerate economic expansion through ongoing reforms and lower inflation.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Saturday at Nigeria’s news conference on the sidelines of the 2026 World Bank/IMF Annual Meetings in Bangkok, Thailand.
Oyedele expressed confidence that the economy could outperform the IMF’s forecast, describing the Fund’s projections as conservative.
“The projections of the IMF have always turned out to be too conservative. This year will not be different,” he said.
The minister said the government was working to complement the Central Bank of Nigeria’s monetary policy measures with fiscal interventions aimed at supporting growth and improving business conditions.
He identified food, energy and logistics costs as major sources of inflationary pressure, noting that efforts were underway to address these factors and ease the cost of doing business.
According to Oyedele, reducing inflation to low single digits could create conditions for single-digit interest rates, lowering borrowing costs for businesses and supporting investment.
He noted that businesses currently facing lending rates close to 30 per cent could expand more effectively if interest rates declined.
The minister also attributed improvements in foreign exchange stability to the CBN’s policy measures, saying the naira had remained stable and was appreciating.
He cited foreign exchange reforms and changes to the tax system over the past two years as key components of the government’s broader economic reform programme.
Oyedele warned that reversing major reforms, particularly the removal of petrol subsidies, could undermine investor confidence, trigger capital flight and place additional pressure on the naira.
“Reversing key reforms, particularly fuel subsidy removal, can trigger capital flight, weaken the Naira and create further economic pressures,” he said.
“Policy decisions must consider their long-term consequences. Reversing reforms can undermine investor confidence and economic stability,” he added.
He also clarified that discounts offered through commercial pricing arrangements should not automatically be classified as fuel subsidies.
The minister described the government’s “Nigerian Rising” initiative as an effort to communicate the country’s reform progress, growing international recognition and emerging investment opportunities.
The IMF, in its October 2026 World Economic Outlook, raised Nigeria’s 2026 growth forecast to 4.2 per cent from 4.1 per cent while retaining its 2027 projection at 4.3 per cent.
