The International Monetary Fund (IMF) says President Bola Ahmed Tinubu’s economic reforms, nearly two years after implementation, have yet to deliver tangible relief to ordinary Nigerians struggling with poverty and rising food insecurity.
Since taking office in May 2023, President Tinubu has rolled out a series of bold economic reforms aimed at correcting Nigeria’s fiscal imbalances. These included removing fuel subsidies, ending central bank deficit financing, and improving the foreign exchange market. While the government and the IMF have praised these reforms as steps toward long-term economic stability, the immediate impact has been harsh on citizens facing the worst cost-of-living crisis in decades.
In its final report following the 2025 Article IV Consultations with Nigerian authorities, the IMF mission—led by Axel Schimmelpfennig—acknowledged that the reforms have strengthened Nigeria’s ability to weather external shocks. However, they noted that widespread poverty and food insecurity remain persistent challenges.
“Gains have yet to benefit all Nigerians,” the IMF stated. “The outlook remains marked by significant uncertainty, with global risks and falling oil prices posing additional threats to Nigeria’s economy.”
The IMF advised the Nigerian government to intensify efforts to build economic resilience, tame inflation, and foster private sector-led growth. The Fund emphasized the importance of using savings from fuel subsidy removal to boost critical investments and expand cash transfer programs, especially under the World Bank-supported initiative targeted at food-insecure populations.
“The 2025 budget should be implemented with a neutral fiscal stance to support the Central Bank’s anti-inflation efforts,” the report advised. “To safeguard key spending priorities, fuel subsidy savings must be redirected to the national budget.”
It also called for a sustained tight monetary policy and recommended that Nigeria adopt a clear disinflation path to anchor inflation expectations.
During the consultation, the IMF team met with top Nigerian officials, including Minister of Finance Wale Edun, CBN Governor Yemi Cardoso, Minister of Agriculture Abubakar Kyari, and representatives from labor unions, civil society, the private sector, and academia.
The message from the IMF was clear: While Nigeria’s economic direction has shifted toward stability, the dividends of reform have yet to be felt by the majority—and more action is needed to make the economy work for all.
