Nigeria was Africa’s fourth-largest economy in 2025, but is expected to rise to third place by 2026, according to International Monetary Fund (IMF) figures.

According to statistics from the IMF’s World Economic Outlook (October 2025 edition), which can be viewed on the Fund’s datamapper, Nigeria’s GDP at current prices would be around $285 billion in 2025, trailing only South Africa, Egypt, and Algeria.

South Africa led the African rankings with a GDP of around $426 billion, followed by Egypt at $349 billion, and Algeria at $288 billion.

However, the IMF predicts that Nigeria will overtake Algeria in 2026 as economic output recovers, owing to increased oil production, greater foreign exchange liquidity, and the influence of continuing economic reforms.

According to IMF forecasts, Nigeria’s GDP would climb to $334 billion, surpassing Algeria ($284 billion) and becoming Africa’s third-largest economy, after only South Africa ($443 billion) and Egypt ($399 billion).

The Fund’s view incorporates optimism that recent changes, such as the elimination of petrol subsidies, exchange rate liberalisation, and fiscal adjustments, will promote medium-term development, notwithstanding short-term inflation concerns.

Africa’s largest economy’s position has evolved in recent years as a result of currency devaluations, rebasing activities, and macroeconomic headwinds in the continent’s other major countries.

On January 19, the IMF revised its prediction for Nigeria’s economic growth rate, raising it to 4.4 percent by 2026.

The Bretton Woods Organization increased the rate upward from its initial prediction of 4.2 percent.

On January 13, the World Bank raised its prediction for Nigeria’s economic growth rate in 2026 to 4.4 percent from 3.7 percent in June 2025.