The International Monetary Fund (IMF) has praised Nigeria’s economic reforms implemented over the past three years, saying they have helped strengthen macroeconomic stability and improved the country’s resilience.
The commendation was contained in a statement issued after the IMF Executive Board concluded its 2026 Article IV Consultation with Nigeria. According to the Bretton Woods institution, the reforms introduced by the administration have supported economic stability, but many Nigerians continue to face difficult living conditions.
The IMF warned that poverty and food insecurity could worsen due to prevailing global economic pressures and stressed the need for sustained policy efforts to ensure inclusive growth.
The Fund noted that maintaining tight macroeconomic policies and pushing ahead with structural reforms, with support from development partners, would be essential to preserving stability and promoting broad-based economic expansion.
It recommended that Nigeria adopt a neutral fiscal stance in 2026 to support disinflation and macroeconomic stability while protecting priority expenditures and social spending.
The IMF welcomed the country’s recent tax reforms but said additional measures might be required over the medium term. It suggested that increased revenue could help finance an expanded cash transfer programme aimed at supporting vulnerable Nigerians.
The institution also raised concerns about off-budget spending and complicated financing arrangements. It urged authorities to accelerate reforms aimed at improving public financial management, fiscal reporting, transparency, accountability, and fiscal risk management.
On monetary policy, the IMF commended Nigerian authorities for efforts that have contributed to lower inflation, although it acknowledged fresh inflationary pressures triggered by rising international fuel and food prices.
It advised the Central Bank of Nigeria (CBN) to maintain a tight monetary policy stance and continue relying on data-driven decisions until inflation is firmly under control and expectations are fully anchored.
The IMF further welcomed progress toward adopting an inflation-targeting framework and encouraged additional measures to strengthen monetary policy transmission and communication.
Regarding foreign exchange management, the Fund endorsed Nigeria’s commitment to a flexible exchange rate regime, noting that foreign exchange interventions could serve a complementary role under specific circumstances.
The IMF’s assessment comes as Nigeria continues to pursue reforms aimed at stabilising the economy, improving investor confidence and sustaining growth amid global economic uncertainties.
