The International Monetary Fund (IMF) has praised Nigeria for key economic reforms but warned that significant challenges remain, particularly high poverty and inflation.
Following its 2025 Article IV Consultation with Nigerian officials, the IMF team, led by mission chief Axel Schimmelpfennig, noted progress in removing fuel subsidies, improving the foreign exchange market, and halting central bank deficit financing.
“The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth,” the IMF said. However, “gains have yet to benefit all Nigerians as poverty and food insecurity remain high.”
The IMF flagged risks such as lower oil prices and global economic volatility, cautioning that the macroeconomic outlook is still marked by “significant uncertainty.”
The Fund urged Nigeria to maintain tight monetary policy to curb inflation, protect critical spending, and channel savings from subsidy removal into targeted relief, including cash transfers.
“A tight monetary policy stance is required to firmly guide inflation down,” the report stated, adding that announcing a clear disinflation path could help manage expectations.
