The International Monetary Fund (IMF) has raised concerns over the persistently high levels of poverty and food insecurity in Nigeria, despite key economic reforms undertaken by the Federal Government since 2023.
This was disclosed in a statement issued on Friday at the end of the IMF’s Article IV consultation mission to Nigeria, which held between April 2 and 15, 2025.
The mission, led by Axel Schimmelpfennig, met with top government and economic stakeholders including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso; Minister of Agriculture and Food Security, Abubakar Kyari; and representatives from civil society, the private sector, and academia.
The IMF acknowledged that Nigeria had made “important steps” to stabilise the economy by ending central bank financing of fiscal deficits, removing fuel subsidies, and improving the functioning of the foreign exchange market. However, it noted that the impact of these reforms had yet to trickle down to the general population.
“Gains have yet to benefit all Nigerians as poverty and food insecurity remain high,” Schimmelpfennig said in the statement.
Nigeria to implement 2025 budget in response to oil price crash
The Fund disclosed that Nigerian authorities had communicated their intention to implement the 2025 budget in a manner responsive to declining international oil prices. The IMF noted that the government plans to maintain a neutral fiscal stance to align with monetary policy tightening efforts aimed at reducing inflation.
It stated that savings from fuel subsidy removal should be channelled into the budget to protect key development spending and to accelerate cash transfers to Nigerians experiencing food insecurity.
“In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported programme,” the statement read.
IMF commends CBN’s data-driven interest rate stance
The IMF praised the Central Bank of Nigeria for adopting a data-dependent approach to monetary policy, describing it as appropriate in managing the country’s inflationary pressures and broader macroeconomic uncertainty.
It emphasised the importance of maintaining a tight monetary policy stance and urged the CBN to consider publicly outlining a disinflation path to help anchor inflation expectations and guide investor confidence.
“The Monetary Policy Committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty,” the Fund said. “Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”
Despite the commendation, the IMF cautioned that Nigeria’s macroeconomic outlook remains fragile, with elevated global risks and weaker oil prices posing challenges to fiscal and external stability. It urged the Federal Government to deepen structural reforms and create enabling conditions for private sector-led growth.
The Article IV consultation is part of the IMF’s regular economic assessment of member countries. The findings from this mission will inform a formal report to be presented to the IMF Executive Board, subject to management approval.
