IMF Hails Nigeria’s Economic Reforms, Warns of Rising Poverty and Inflation Risks

The IMF has praised Nigeria’s reforms over the last three years for strengthening macroeconomic stability and building resilience. It cautioned that many Nigerians still face difficult living conditions, warning that poverty and food insecurity could worsen amid global economic pressures. The Fund urged a neutral fiscal stance in 2026 to sustain stability, protect priority and social spending, and consider funding an expanded cash transfer program for the most vulnerable. Directors welcomed recent tax reforms but recommended further measures over the medium term. They called for tighter public financial management, greater transparency, and a phased removal of off-budget spending. On monetary policy, the Fund advised maintaining a strict stance until inflation is firmly on a downward path and fully embedded in expectations. The board endorsed a flexible exchange rate regime with carefully calibrated foreign exchange interventions and urged Nigeria to reduce reliance on volatile portfolio inflows. It also highlighted progress on banking sector recapitalization, FATF delisting, and the need to strengthen crypto regulation, while forecasting growth of around 4.1% in 2026 and a return to disinflation in the second half of the year.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.