(Ecofin Agency) - In Q1 2024, Nigeria's GDP growth dropped to 2.98% from 3.46% in Q4 2023, according to the National Bureau of Statistics.

The International Monetary Fund (IMF) has recently revised its growth forecast for Nigeria, lowering it by 0.2 percentage points. The country's economic growth is now expected to reach 3.1% in 2024, down from the 3.3% estimated in April. This update comes from the IMF's July 2024 World Economic Outlook report.

The institution attributes this downward revision to weaker-than-expected economic activity in the first quarter of this year. Nigeria's GDP growth fell to 2.98% in Q1 2024, down from 3.46% in Q4 2023, according to the National Bureau of Statistics (NBS). However, the IMF maintains its 3% growth forecast for Nigeria in 2025.

Nigeria is currently experiencing economic fragility, exacerbated by reforms implemented by President Bola Tinubu's administration. Notable among these reforms are the removal of fuel subsidies and the unification of exchange rates. These measures have intensified the economic challenges faced by Nigerians, who are grappling with rising food prices. In June, the country's overall inflation reached 34.19%, up from 33.95% in May.

To address these challenges, the Nigerian government announced a $1.3 billion stimulus plan on July 4. This program, set to span the next six months, aims to create millions of jobs and transform the Nigerian economy.

The IMF has also lowered its 2024 growth forecast for sub-Saharan Africa to 3.7%, down from the previous estimate of 3.8% in April. However, the institution raised its forecast for the region in 2025, increasing it from 4% to 4.1%.