The International Monetary Fund (IMF) has commended the Nigerian government for implementing bold economic reforms under Bola Ahmed Tinubu since May 2023, including the removal of fuel subsidies, ending Central Bank financing of fiscal deficits, and liberalizing the foreign exchange market. These measures have helped stabilize the economy, enhance resilience, and position Nigeria better to navigate global economic shocks.
However, the IMF cautioned that despite these reforms, the benefits have yet to reach all Nigerians, with poverty and food insecurity remaining widespread. Over half of Nigeria’s population about 129 million people still live in poverty, and the cost-of-living crisis continues to affect ordinary citizens.
Axel Schimmelpfennig, IMF Mission Chief for Nigeria, highlighted during the 2025 Article IV consultations that while the government has taken important steps to support growth, the macroeconomic outlook is marked by significant uncertainty. Declining global oil prices and elevated global risks pose challenges to Nigeria’s fiscal and external stability.
The IMF urged Nigeria to continue strengthening macroeconomic buffers, maintain tight monetary policy, and accelerate structural reforms to promote private sector-led growth. It also recommended that savings from subsidy removal be redirected to protect critical development spending and expand cash transfers to vulnerable populations.
In summary, the IMF acknowledges Nigeria’s progress in economic reforms but emphasizes that much remains to be done to ensure these gains translate into improved living standards for all Nigerians amid ongoing global and domestic challenges.
