The International Monetary Fund (IMF) has acknowledged the Nigerian government’s recent economic reforms but says the benefits are yet to reach ordinary citizens, as poverty and food insecurity remain widespread.
In a statement following the conclusion of its 2025 Article IV Consultation with Nigeria, the IMF noted that while President Bola Tinubu’s administration has taken bold steps to stabilize the economy, the positive effects are not yet being felt by many Nigerians.
“The authorities have implemented significant reforms to support growth and economic resilience,” said Axel Schimmelpfennig, the IMF Mission Chief to Nigeria. “However, these gains have not yet translated into improved living conditions, as poverty and food insecurity continue to affect a large segment of the population.
“Among the key reforms cited by the IMF are the removal of fuel subsidies, exchange rate unification, and curbing the Central Bank’s direct financing of fiscal deficits. Though these measures are seen as crucial for long-term economic stability, they have led to higher costs of living in the short term.
The IMF also warned of challenges ahead, including fluctuating global oil prices and inflationary pressures, and called on the government to implement the 2025 budget in a way that shields vulnerable Nigerians. It recommended increased investment in infrastructure and social programs, using the fiscal space created by subsidy savings.
The IMF concluded by urging Nigerian authorities to maintain tight monetary policies to contain inflation and promote exchange rate stability, stressing that reforms must be accompanied by strong efforts to protect the most affected communities.
