By Lizzy Chirkpi
The International Monetary Fund (IMF) has commended the economic reforms implemented by President Bola Tinubu’s administration, saying they have strengthened Nigeria’s macroeconomic outlook and enhanced resilience to external shocks. However, the Fund warned that rising poverty and food insecurity remain major challenges confronting millions of Nigerians.
The assessment is contained in the IMF’s 2026 Article IV Consultation Report on Nigeria, released on Tuesday, which reviewed the impact of the government’s fiscal and monetary reforms over the past three years.
According to the IMF, key policy measures—including the removal of fuel subsidies, exchange-rate liberalisation, and ongoing tax reforms—have contributed to greater economic stability and improved investor confidence.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience. Still, conditions for many Nigerians remain difficult,” the Fund stated.
Despite the positive economic indicators, the IMF expressed concern over worsening living conditions for a significant portion of the population. It estimated that more than 60 per cent of Nigerians were living below the poverty line by the end of 2025, while over 27 million people faced food insecurity.
The Fund noted that although the reforms were necessary to address long-standing structural imbalances in the economy, they have imposed substantial short-term costs on households, particularly low-income earners struggling with persistent inflation and the rising cost of living.
Nigeria’s economy is projected to grow by 4.1 per cent in 2026, up from an estimated 4.0 per cent in 2025. However, the IMF cautioned that high inflation, elevated food prices, insecurity, and global economic uncertainties could undermine the expected gains and place additional pressure on vulnerable groups.
The report identified insecurity—especially in Nigeria’s agricultural-producing regions—as a major obstacle to economic growth and efforts to reduce poverty and hunger. It stressed that improving security would be critical to boosting food production and easing inflationary pressures.
To mitigate the social impact of ongoing reforms, the IMF urged the Federal Government to expand social safety nets and implement targeted support programmes for vulnerable households.
“The challenge now is to ensure that macroeconomic stability translates into broad-based and inclusive growth that improves living standards for all Nigerians,” the report noted.
Responding to the IMF’s assessment, the Federal Government described the report as a validation of the Tinubu administration’s economic agenda. Officials argued that the reforms are restoring investor confidence, strengthening public finances, and laying the foundation for sustainable long-term growth.
Nevertheless, the IMF maintained that sustaining the reform momentum while accelerating social protection measures and bringing inflation under control will be crucial to reducing poverty and ensuring that the benefits of economic recovery are shared more broadly across the population. :::
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