The IMF praised Nigeria’s reforms, urging continued efforts against poverty and inflation

The International Monetary Fund (IMF) has praised Nigeria’s economic reforms over the past three years.

In a statement issued on Tuesday following the conclusion of the Executive Council’s 2026 Article IV Consultation with Nigeria, the Bretton Wood institutions noted that reforms undertaken by the current administration had strengthened macroeconomic stability and increased the country’s resilience.

However, the report warns that living conditions remain difficult for many Nigerians, with poverty and food insecurity likely to worsen amid current global economic challenges.

In its assessment, the IMF said stringent macroeconomic policies and ongoing structural reforms, supported by technical assistance from the IMF and development partners, will be critical to maintaining stability and promoting inclusive growth.

They called for a neutral fiscal stance in 2026 to support macroeconomic stability and disinflation while maintaining priority spending and social spending.

The IMF welcomed Nigeria’s recent tax reforms, but noted that additional tax policy measures may be needed in the medium term, including funding for an expanded cash transfer program aimed at supporting the country’s most vulnerable citizens.

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The agency also expressed concern over off-budget spending and complex financing arrangements, and urged authorities to accelerate reforms to strengthen public financial management, fiscal reporting, transparency, accountability and fiscal risk management.

Regarding monetary policy, the IMF praised the government’s efforts to reduce inflation, and acknowledged the existence of new inflationary pressures arising from rising international fuel and food prices.

The Central Bank of Nigeria (CBN) is advised to maintain its tight monetary policy stance and continue its data-driven approach until inflation is truly on a downward trajectory and inflation expectations are fully contained.

The IMF also welcomed progress in implementing the inflation targeting framework and encouraged further efforts to strengthen monetary policy transmission and communication.

Regarding exchange rate management, the IMF supports the government’s commitment to a flexible exchange rate regime, and notes that foreign exchange interventions can play a complementary role in certain circumstances.