Nigeria, July 3 -- The International Monetary Fund has projected that Nigeria's economy will grow by 3.4 per cent in 2025, following gains from key economic reforms and stronger investor confidence.

The IMF made the forecast in its Article IV consultation report on Wednesday , a regular assessment of a country's economic health and policies.

The fund said Nigeria's growth is being driven by higher oil output, the expected start of a major domestic refinery, and strong performance in the services sector.

In April, the IMF had projected Nigeria's economy would grow by 3 per cent in 2024, down from an earlier forecast of 3.2 per cent. But its latest assessment puts growth for the year at 3.4 per cent, up from 2.9 per cent in 2023.

The IM...