“Nigeria to overtake Algeria as Africa’s third-largest economy in 2026” — IMF

Nigeria is projected to move up to third place among Africa’s largest economies in 2026, overtaking Algeria, according to the International Monetary Fund (IMF).

Data from the IMF’s October 2025 World Economic Outlook, accessed through its datamapper, shows Nigeria ranked fourth in 2025 with a gross domestic product (GDP) of about $285 billion at current prices. South Africa led with $426 billion, followed by Egypt at $349 billion and Algeria at $288 billion.

The IMF now forecasts that Nigeria’s GDP will rise to $334 billion in 2026, placing it ahead of Algeria, whose economy is projected at $284 billion. South Africa and Egypt are expected to retain the top two positions with projected GDPs of $443 billion and $399 billion respectively.

The Fund attributes Nigeria’s expected rebound to increased oil production, improved foreign exchange liquidity and the effects of ongoing economic reforms. These include the removal of petrol subsidies, exchange-rate liberalisation and fiscal adjustments aimed at stabilising the economy.

Nigeria’s ranking among African economies has shifted in recent years due to currency devaluations, rebasing exercises and broader macroeconomic pressures across the continent.

In January, the IMF raised its forecast for Nigeria’s economic growth in 2026 to 4.4 percent, up from an earlier estimate of 4.2 percent. The World Bank also revised its projection upward, increasing its 2026 growth estimate for Nigeria to 4.4 percent from 3.7 percent in June 2025.