The International Monetary Fund (IMF) has acknowledged that the Nigerian government has taken bold steps toward economic stabilisation, but the effects of these reforms have yet to be felt by the broader population. Despite efforts to restore macroeconomic balance, poverty and food insecurity remain deeply entrenched.
This observation was made in a statement released on Friday following the conclusion of the IMF’s 2025 Article IV consultation mission to Nigeria, which took place from April 2 to 15.
Led by Mission Chief Axel Schimmelpfennig, the IMF delegation held discussions in Abuja and Lagos with key stakeholders, including Minister of Finance Wale Edun, Minister of Agriculture and Food Security Abubakar Kyari, CBN Governor Yemi Cardoso, and representatives from labour unions, academia, civil society, and the private sector.
Economic Reforms Acknowledged, But Gains Elusive
The IMF commended the Nigerian authorities for implementing significant fiscal and monetary reforms in recent months. These included:
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The removal of fuel subsidies
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Ending the monetary financing of the fiscal deficit
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Reforms aimed at stabilising the foreign exchange market
However, the Fund stressed that the anticipated benefits of these reforms are not yet reaching the average Nigerian.
“Gains have yet to benefit all Nigerians as poverty and food insecurity remain high,”
— Axel Schimmelpfennig, IMF Mission Chief.
Persistent Economic Risks
The IMF noted that Nigeria still faces considerable economic headwinds. External factors such as falling global oil prices and increased financial risk sentiment continue to pose threats to economic stability.
While reforms have placed Nigeria in a better position to withstand global economic shocks, the Fund emphasised the need for further macroeconomic adjustments to tackle inflation and promote private-sector-led growth.
2025 Budget, Fiscal Discipline, and Social Protection
Nigerian officials assured the IMF team that the 2025 budget will reflect the impact of lower oil prices and will maintain a neutral fiscal stance to support monetary policy in reducing inflation.
The IMF advised that any fiscal savings resulting from fuel subsidy removals should be redirected to protect critical public investments.
The Fund also underscored the importance of rapidly scaling up the World Bank-supported cash transfer program to assist Nigerians grappling with food insecurity.
“In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported programme to provide relief to those experiencing food insecurity,”
— IMF statement.
CBN Urged to Maintain Tight Monetary Policy
To combat persistent inflation, the IMF called on the Central Bank of Nigeria (CBN) to sustain a firm monetary stance.
According to the Fund, a consistent tightening of monetary policy will be essential in driving down inflation and ensuring economic stability over the medium term.
