Nigeria to become Sub-Saharan Africa’s second-largest economy by 2026

September 20, 2024

By Samuel Ogunsona

Nigeria is poised to reclaim its position as the second-largest economy in sub-Saharan Africa by 2026, according to a forecast by Bismarck Rewane, Managing Director and CEO of Financial Derivatives Company Limited.

Speaking at the Access Bank Customer Forum in Lagos, Rewane predicted that Nigeria’s economy will grow by 3.5% by 2026, reaching a gross domestic product (GDP) of approximately $400 billion.

Rewane mentioned that the projected growth is driven by several factors, including improve in the country’s foreign exchange auction system, increasing foreign reserves, expected to reach $20 billion and the country’s pro-market reforms implemented by the new administration

“There will be an efficient forex auction system, and unencumbered foreign reserves will hit $20bn.

“We will see inflation drop to 22 per cent, and the MPR is likely to come down to 20 per cent, which will reduce bad loans,” he explained.

“Nigeria is on track to becoming the second-largest economy in sub-Saharan Africa,” Rewane said. “The country’s economic fundamentals are strong, and with the right policies, we can achieve sustained growth.”

It’s worth noting that Nigeria’s economy has faced challenges in recent years, including sluggish growth, elevated inflation levels, and debt sustainability problems

However, with pro-market reforms implemented by the new administration, the economy is shifting towards a private sector-led growth model.

This development is expected to have a positive impact on Nigeria’s business environment, attracting foreign investment and creating job opportunities.