The International Monetary Fund (IMF) has called on Nigeria to prioritize food security, address institutional fragility, and accelerate structural reforms as part of broader efforts to strengthen the country’s economic outlook.
This appeal was made in a statement released after the IMF Executive Board concluded its 2025 Article IV Consultation with Nigeria.
While the Board recognized achievements made through key reforms in the past two years—such as improvements in macroeconomic stability and resilience—it emphasized that the benefits had yet to reach a broad spectrum of the population.
The directors warned: “Downside risks have increased with heightened global uncertainty.
“A further decline in oil prices or an increase in financing costs would adversely affect growth, fiscal and external positions, undermine financial stability, and exacerbate exchange rate pressures. A deterioration of security could also impact growth and worsen food insecurity.”
To navigate these vulnerabilities, the IMF recommended agile and responsive policymaking to sustain macroeconomic gains, stimulate inclusive growth, and reduce poverty. Strengthening food systems and improving agricultural productivity were identified as immediate priorities, alongside reforms to improve access to health and education, electricity infrastructure, and climate resilience.
The Board urged Nigerian authorities to remove structural obstacles to private sector credit as a way of stimulating investment and economic expansion.
It also supported the Central Bank of Nigeria’s continued tight monetary stance, advising it be maintained until inflation is decisively contained.
Commending the end of deficit monetisation and recent improvements in central bank governance, the IMF said these efforts lay the groundwork for effective inflation targeting.
It also welcomed reforms in the foreign exchange market aimed at boosting liquidity and price transparency, while calling for a robust FX intervention framework to manage volatility.
On fiscal policy, the directors encouraged a neutral approach that maintains stability while focusing spending on infrastructure and expanding social protection through faster rollout of targeted cash transfers to the most vulnerable.
They also praised Nigeria’s advancing tax reform agenda, calling it essential for increasing government revenue, enabling developmental investment, and ensuring debt sustainability.
In terms of financial sector oversight, the Board took note of ongoing efforts to strengthen the banking system, including plans to raise minimum capital requirements and promote greater financial inclusion.
It called for risk-based supervision of emerging areas such as consumer lending, fintech, mortgage markets, and cryptocurrencies.
The directors acknowledged progress on Nigeria’s Anti-Money Laundering and Counter-Terrorist Financing framework, but emphasized the urgency of resolving pending issues to enable the country’s removal from the Financial Action Task Force (FATF) grey list.
The IMF then reaffirmed its commitment to supporting Nigeria through continued capacity development, while underlining the importance of improving data quality to ensure evidence-based policy decisions.
