The International Monetary Fund (IMF) has expressed serious concern over the continuing rise in poverty and food insecurity in Nigeria, despite the government’s implementation of several economic reforms since 2023.
This was revealed in a statement released on Friday, April 18, 2025, following the conclusion of the IMF’s Article IV consultation mission to Nigeria, which took place from 2 to 15 April 2025.
Led by Axel Schimmelpfennig, the IMF delegation held discussions with key figures in Nigeria’s economic and political landscape. These included 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; as well as representatives from civil society organisations, the private sector, and academia.
The Fund acknowledged the government’s efforts to stabilise the economy through measures such as halting the Central Bank’s financing of fiscal deficits, removing fuel subsidies, and enhancing the operation of the foreign exchange market.
However, it noted that the effects of these reforms have yet to positively impact the broader population.
“Gains have yet to benefit all Nigerians as poverty and food insecurity remain high,” Schimmelpfennig said in the statement.
In response to a downturn in global oil prices, Nigerian authorities have indicated their intention to implement the 2025 budget with caution, maintaining a neutral fiscal stance to complement ongoing monetary tightening efforts aimed at curbing inflation.
The IMF stressed the importance of redirecting the savings from fuel subsidy removal into essential development expenditure and expanding the scope of cash transfers to vulnerable households facing hunger.
“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.
The IMF also commended the CBN for adopting a data-driven approach to interest rate decisions, describing the strategy as suitable for tackling inflation and managing broader macroeconomic risks. It is recommended that the central bank outline a disinflationary trajectory to bolster investor confidence and anchor inflation expectations.
“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 recognising progress in some areas, the IMF warned that Nigeria’s economic outlook remains precarious.
It highlighted weakening oil prices and global risks as ongoing threats to the country’s fiscal and external balance, urging the government to intensify structural reforms and support private sector-led economic growth.
The Article IV consultation forms part of the IMF’s routine surveillance of member economies. The findings from the mission will be compiled into a formal report for consideration by the IMF Executive Board, subject to management approval.
