The International Monetary Fund (IMF) has cautioned that Nigeria’s economic future remains uncertain, even as the country implements broad reforms aimed at stabilizing its fiscal and monetary systems.
After concluding its 2025 Article IV Consultations with Nigerian authorities, the IMF acknowledged progress in areas such as halting Central Bank deficit financing, eliminating fuel subsidies, and improving the foreign exchange market. However, it noted that the benefits of these reforms have not yet reached the general population.
The statement, which was released on Friday, highlighted the lingering issues affecting millions of Nigerians.
“The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth. The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved. Gains have yet to benefit all Nigerians as poverty and food insecurity remain high,” the report stated.
The IMF further pointed to global economic risks and low oil prices as major challenges facing Nigeria.
It emphasised the need for tighter monetary policy, a neutral fiscal stance, and proper use of fiscal savings to protect essential investments and support vulnerable citizens.
“The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy. The reforms since 2023 have put the Nigerian economy in a better position to navigate this external environment,” it said.
To support recovery, the IMF recommended that authorities strengthen resilience, ensure disinflation, and prioritize investment in growth-friendly projects while accelerating support programs like the World Bank-backed cash transfers.
The mission engaged with senior government officials, private sector players, civil society, and labor unions during its consultation.
via: Information Nigeria
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