The International Monetary Fund (IMF) says that oil-producing countries in sub-Saharan Africa are growing about half as fast as the region as a whole, which the IMF describes as “moderate and uneven” growth.

The IMF’s regional economic outlook for sub-Saharan Africa, released on Friday, highlights that while diversified economies like Senegal and Tanzania are expected to grow above the regional average, Nigeria is expected to lag behind, with growth forecast at 2.9%.

The Fund has urged oil-exporting countries in sub-Saharan Africa to reform their economies to address uneven regional economic growth.

According to the IMF’s latest World Economic Outlook, the region’s economy is expected to grow 3.6% this year, in line with last year’s growth and slightly lower than the 3.8% forecast in april.

Commodity-dependent economies continue to lag behind their more diversified counterparts.

IMF Africa Director Abebe Aemro Selassie has stressed that the Nigerian government must “address head-on” the pressing economic challenges that have led to high inflation and increased costs of living.

He said, “South Sudan, Nigeria and Angola are all in this camp. They experienced very significant macroeconomic imbalances, financing problems which slowed down growth.

“They (oil exporters) need to find new sources of growth and get more investment from the private sector – so it is important to work on reforms that will facilitate this. »

The report also highlights additional challenges for African oil producers, including the global transition to green energy in response to climate change.

President Tinubu’s reforms

Nigeria is Africa’s largest oil producer, pumping about 1.4 million barrels of oil per day, although below its standard of about 2 million barrels per day.

President Tinubu’s 17-month-old administration has instituted bold reforms in the energy, power and foreign exchange sectors to free up funds for investment in critical sectors like infrastructure, health , electricity and others.

While President Tinubu’s efforts have been praised abroad, Nigerians at home are facing the worst inflation of the 21st century, plunging the vulnerable into even deeper poverty. The government has implemented a cash transfer program for vulnerable people, but the process has been slow due to digital verification issues.

Economic growth in the SSA region in 2025

Sub-Saharan Africa’s economic growth is expected to reach 4.2% next year, according to the IMF report. Excluding the region’s largest economies, Nigeria and South Africa, SSA would grow much faster.

The report highlights that almost half of the world’s 20 fastest-growing economies this year are in sub-Saharan Africa. However, he warned that even faster growth is essential to combat widespread poverty and inequality.

A major obstacle to accelerated growth remains limited access to affordable financing, with many countries facing large debt loads and high debt servicing costs.

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