The International Monetary Fund (IMF) has commended Nigeria’s economic reforms over the past three years.
In a statement released on Tuesday following the conclusion of its Executive Board’s 2026 Article IV Consultation with Nigeria, the Bretton Wood institution noted that the reforms put in place by the current administration had strengthened macroeconomic stability and improved the country’s resilience.
It, however, cautioned that living conditions remained difficult for many Nigerians, with poverty and food insecurity likely to worsen amid current global economic challenges.
In its assessment, the IMF said tight macroeconomic policies and continued structural reforms, supported by technical assistance from the Fund and development partners, would be crucial to preserving stability and promoting inclusive growth.
It called for a neutral fiscal stance in 2026 to support macroeconomic stability and disinflation while safeguarding priority expenditures and social spending.
The IMF welcomed Nigeria’s recent tax reforms but noted that additional tax policy measures might be required over the medium term, including funding for an expanded cash transfer programme aimed at supporting the most vulnerable citizens.
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The agency also expressed concern over off-budget spending and complex financing arrangements, urging authorities to accelerate reforms to strengthen public financial management, fiscal reporting, transparency, accountability and fiscal risk management.
On monetary policy, IMF commended the authorities for reducing inflation, while acknowledging renewed inflationary pressures arising from higher international fuel and food prices.
It advised the Central Bank of Nigeria (CBN) to maintain a tight monetary policy stance and continue a data-driven approach until inflation is firmly on a downward trajectory and inflation expectations are fully anchored.
The IMF also welcomed progress towards adopting an inflation-targeting framework and encouraged further efforts to strengthen monetary policy transmission and communication.
Regarding exchange rate management, the Fund endorsed the authorities’ commitment to a flexible exchange rate regime, noting that foreign exchange interventions could play a complementary role under specific circumstances.
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