The International Monetary Fund (IMF) has commended Nigeria’s economic reforms, noting that measures implemented over the past three years under President Bola Ahmed Tinubu’s administration have delivered stronger macroeconomic outcomes and improved resilience against external shocks.
In its latest country report released yesterday following the annual review of Nigeria’s economy, the IMF stated that the overall direction of government reforms has placed the Nigerian economy on a firmer footing, reinforcing prospects for sustainable growth
Citing liquid and resilient foreign exchange market, stronger external buffers, revenue growth and financial system stability, the IMF stated that the reforms by the government, while difficult, had helped improve economic fundamentals.
The report however highlighted that significant risks remain, noting that while higher global fuel, food and fertiliser prices would improve exports and fiscal revenues, these could lead to inflationary pressures, likely aggravating poverty and food insecurity.
The report stated that insecurity and poverty remain significant challenges, although the Fund acknowledged that the larger part of increase in poverty occurred before Tinubu assumed office in 2023.
”Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience. Still, conditions for many Nigerians remain difficult,” IMF stated.
IMF welcomed the tax reforms, noting that additional tax policy measures may be needed over the medium term, including to fund a scaled up cash transfer programme to provide relief to the most vulnerable.
Highlighting concerns about off-budget spending and complex financing instruments, IMF called for accelerating reforms to strengthen the budget process, public financial management, fiscal reporting and risk framework, transparency, and accountability.
The Fund emphasised the need for sustained reforms to support inclusive growth and diversification, especially in the areas of fiscal management, security, electricity, agriculture, infrastructure, and human capital.
The Federal Government said the overall positive assessment of the government’s economic reform programme by the IMF was a further independent validation of the bold and necessary reforms undertaken under the leadership of President Tinubu.
Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the government remains focused on translating the early gains of its economic reforms into long-term benefits by increasing crude oil production, expanding domestic refining capacity, growing gas production and exports, and attracting new investments across the energy value chain.
He pointed out that the report’s medium-term outlook reinforces confidence in Nigeria’s economic prospects.
“The IMF projects continued economic growth above four per cent, improving external reserves, rising investment, and strengthening fiscal revenues over the medium term. Public debt has already declined relative to GDP, while reserve buffers have strengthened considerably. These outcomes which complement recent sovereign credit rating upgrades by leading international rating agencies reflect the growing resilience of the Nigerian economy and the positive impact of ongoing reforms.
“The Federal Government remains firmly committed to maintaining macroeconomic stability, accelerating inclusive growth, strengthening fiscal discipline, deepening structural reforms, improving the investment climate, expanding infrastructure, enhancing human capital development and job creation. We will continue to pursue policies that support private sector growth, attract domestic and foreign investment, and improve the competitiveness of the Nigerian economy,” Oyedele said.
He acknowledged IMF’s observation that poverty and food insecurity remain significant challenges, assuring that the government is mindful that macroeconomic stability, while necessary, is not sufficient on its own.
He pointed out that with per capita income growing by nearly 10 per cent in 2025 indicating marked reduction in poverty levels, the government is committed to inclusive economic growth that would translate into tangible improvements in the welfare of Nigerians.
“Accordingly, the government continues to strengthen targeted social protection programmes, including direct cash transfers to vulnerable households, support for small businesses, student financing through the Nigerian Education Loan Fund (NELFUND), consumer credit initiatives, healthcare investments, and interventions aimed at improving livelihoods and expanding economic opportunities,” Oyedele said.
He highlighted that the government is scaling up agricultural investments aimed at moderating food inflation while creating jobs and raising rural incomes.
According to him, government’s Renewed Hope National Agricultural Mechanisation Programme and other initiatives were designed to improve agricultural productivity, expand irrigation and dry-season farming, enhance access to inputs and financing, strengthen value chains, and improve food security.
He assured that successful implementation of Nigeria’s new tax laws, the digitisation of revenue collection processes, improved transparency in public finance, and enhanced accountability mechanisms will continue to strengthen fiscal sustainability while ensuring a fairer and more efficient tax system.
While acknowledging IMF’s recommendations on fiscal reporting, budget transparency, and data reconciliation, Oyedele said the government is already taking steps to strengthen fiscal data integrity, improve coordination among relevant institutions, enhance transparency in budget execution, and deepen public financial management reforms.
“While challenges remain, the direction is clear and the foundations are stronger. The ultimate objective of these reforms is not merely improved economic indicators, but better outcomes for all Nigerians – lower inflation, decent jobs, higher incomes, greater economic opportunity, and a better quality of life,” Oyedele said.
