The Executive Board of the International Monetary Fund (IMF) has commended Nigeria’s monetary and fiscal authorities for the implementation of significant economic reforms over the past two years, noting marked improvements in macroeconomic stability and investor confidence.
The commendation was made during the IMF’s 2025 Article IV Consultation with Nigeria, as contained in a statement issued from Washington, D.C.
According to the IMF, Nigeria’s macroeconomic reforms—particularly the removal of fuel subsidies, improved foreign exchange market operations, and the cessation of deficit monetisation—have contributed to stronger economic resilience.
The Fund praised the Central Bank of Nigeria (CBN) for maintaining a tight monetary policy stance, stating that “this approach should continue until disinflation becomes entrenched.”
It also welcomed the CBN’s banking sector reforms, including the ongoing recapitalisation process, and recognised efforts to boost financial inclusion and promote capital market growth. The Directors called for “robust risk-based supervision of mortgage and consumer lending, fintech, and crypto sectors.”
In addition, the IMF commended Nigeria’s strides in improving its anti-money laundering and counter-terrorism financing (AML/CFT) framework, urging further steps to exit the Financial Action Task Force (FATF) grey list.
The report noted progress in foreign exchange reforms and reserve accumulation, describing recent efforts as vital for market confidence. The Fund highlighted that “reforms in the foreign exchange market have supported price discovery and liquidity,” while also urging “a robust FX intervention framework to contain excess volatility, as the exchange rate remains a key shock absorber.”
The IMF said Nigeria’s reforms had enabled it to successfully re-enter the Eurobond market and attract renewed portfolio inflows. The statement added that “growth accelerated to 3.4 per cent in 2024, driven mainly by increased hydrocarbon output and the vibrant services sector. Agriculture remained subdued, owing to security challenges and sliding productivity.”
Looking ahead, the Article IV report projected that real GDP would expand by 3.4 per cent in 2025, supported by the Dangote Refinery’s domestic output, higher oil production, and a strong services sector. Medium-term growth is expected to remain around 3.5 per cent, underpinned by continued reform momentum.
On inflation, the IMF noted that naira stabilisation and improved food supply helped reduce headline inflation to 23.7 per cent year-on-year in April 2025, from a 2024 average of 31 per cent, based on the rebased Consumer Price Index (CPI) by the Nigerian Bureau of Statistics. Inflation is projected to fall further, supported by continued tight macroeconomic policies and easing retail fuel prices.
The report stated that fiscal performance improved in 2024, with revenue gains from naira depreciation, enhanced revenue administration, and increased grants outweighing rising interest and overhead costs.
However, the IMF warned of downside risks, including global economic uncertainty, declining oil prices, rising financing costs, and potential security deterioration. These could negatively affect growth, fiscal balance, and exchange rate stability.
The IMF Directors acknowledged that the benefits of reforms were yet to be felt by all Nigerians. They emphasised “the importance of agile policymaking to safeguard macroeconomic stability, boost growth, and reduce poverty.” They also called for “the timely and sequenced phasing out of capital flow management measures.”
The Fund recommended a neutral fiscal stance focused on macroeconomic stabilisation, with prioritisation of growth-supportive investments. The Directors urged accelerated cash transfer delivery to vulnerable populations.
They also lauded the ongoing tax reform bill, describing it as “a major step toward improving revenue mobilisation, creating fiscal space for development, and maintaining debt sustainability.”
To improve long-term growth, the report advised addressing insecurity, bureaucratic inefficiencies, low agricultural productivity, infrastructure gaps, and inadequate electricity supply. It also stressed the need for greater investment in health, education, and climate resilience.
Additionally, the Directors called for the removal of structural bottlenecks to private credit access and underscored that “better data quality is essential for effective, evidence-based policymaking.”
The IMF reiterated its continued capacity development support for Nigeria’s reform agenda.