[ACCI-CAVIE] Nigeria is currently slipping down the rankings of African economic powers, mainly due to the devaluation of the Naira, lower oil production and rising inflation.
The competition for the title of leading economic power in Africa continues between Nigeria and South Africa. According to forecasts by the International Monetary Fund (IMF), South Africa should regain its leading position in 2024, but this position could be short-lived, with a further decline forecast for the following year. According to the IMF, South Africa’s GDP will reach $401 billion in 2024, compared with $395 billion for Nigeria and $358 billion for Egypt.
Although South Africa could briefly regain the top spot, Nigeria is projected to regain its rank in 2025, before ceding the top spot to Egypt again in 2026.
Nigerian President Bola Tinubu launched bold structural reforms this year, including the abolition of fuel subsidies and the unification of the exchange rate. Although these measures have led to higher inflation and a depreciation of the Naira against the US dollar, they are designed to restore public finances and should lead to more robust and inclusive economic growth in the future, according to Daniel Leigh of the IMF.