*Axel Schimmelpfennig, leader of the International Monetary Fund Article IV Consultation Mission to Nigeria, reports President Bola Ahmed Tinubu administration’s bold economic reforms have yet to benefit all Nigerians as ‘poverty and food insecurity remain high’ in the West African country

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The International Monetary Fund (IMF) has applauded the Nigerian Government for taking significant fiscal measures to stabilise the West African country鈥檚 economy.

The IMF, however, observed the impact of the Bola Ahmed Tinubu administration’s economic reforms is yet to be felt by most citizens, as poverty and food insecurity remain high in Nigeria.

The global lender made noted this in a statement issued Friday, April 18, 2025, at the end of its Article IV consultation mission to Nigeria, held between April 2-15.

President Bola Ahmed Tinubu

The delegation, led by Mission Chief Axel Schimmelpfennig, held meetings with top government officials in Abuja and Lagos.

In attendance include Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy; Senator Abubakar Kyari, Honourable Minister for Agriculture and Food Security; Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), and representatives of the Labour unions, academia, civil society, and the Organised Private Sector (OPS).

‘Poverty, food insecurity high’ in Nigerian economy

The IMF though acknowledged

the Nigerian authorities have taken bold fiscal and monetary measures in the past several months, including removing fuel subsidies, halting monetary financing of the fiscal deficit, and implementing reforms to improve the Foreign Exchange (Forex) market.

The Bretton Woods institution, however, said the benefits of the far-reaching economic reforms have yet to trickle down to greater number of consumers in the country.

Schimmelpfennig, in the statement, published on the Fund鈥檚 Web site, also noted: 鈥淕ains have yet to benefit all Nigerians as poverty and food insecurity remain high.”

The Fund reported that the Nigerian economy has continued to face considerable uncertainty, particularly from external risks, such as elevated global risk sentiment and falling international oil prices.

According to IMF, while recent reforms have positioned Nigeria to better weather global shocks, further macroeconomic adjustments are needed to reduce inflation, and create conditions for private sector-led growth.

Responding to the Fund’s observations, it is noted the Nigerian authorities informed the visiting team that the 2025 Federal budget would be implemented in a manner that responds to declining prices in the global oil market.

The authorities also indicated that a neutral fiscal stance would be maintained to support monetary efforts aimed at curbing inflation in the economy.

The IMF, therefore, advised that fiscal savings from the removal of fuel subsidies should be channelled back into the budget to protect essential public investments.

The global lender as well emphasised the need to accelerate and expand the delivery of targeted cash transfers to Nigerian consumers facing acute food insecurity under the World Bank-supported social protection programme.

It stated: 鈥淚n particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported programme to provide relief to those experiencing food insecurity.”

On addressing high inflation

The IMF said the CBN, on the monetary policy, must maintain a tight stance to ensure that inflation continues to decline.

The Fund commended the Monetary Policy Committee鈥檚 data-driven approach and suggested that announcing a formal disinflation path could help to anchor inflation expectations in the economy.

The statement noted: 鈥淭he Monetary Policy Committee鈥檚 data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.

“Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”

The observations made in the statement were preliminary and based on discussions held during the mission, said the Fund.

The IMF disclosed that a full report would be prepared and submitted to the IMF Executive Board for final consideration, subject to management approval.

The Federal Government has restated the economic reforms being implemented by President Tinubu will lead to prosperity, despite the short-term pains that they are causing millions of Nigerians.

With Tinubu鈥檚 Renewed Hope Agenda, the Nigerian leader has said that his administration is taking bold steps to introduce reforms and recover from its past mistakes and steady on the path of prosperity.

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