The International Monetary Fund (IMF) has raised alarm over the persistent increase in poverty and food insecurity in Nigeria, despite the government’s implementation of various economic reforms since 2023.
In a statement released on Friday, April 18, 2025, following the conclusion of the IMF’s Article IV consultation mission to Nigeria from 2 to 15 April 2025, it was revealed that the Fund expressed serious concerns about the ongoing challenges faced by the Nigerian population.
Led by Axel Schimmelpfennig, the IMF delegation engaged in discussions with key stakeholders in Nigeria’s economic and political spheres. These included meetings with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso; Minister of Agriculture and Food Security, Abubakar Kyari, as well as representatives from civil society organizations, the private sector, and academia.
While the IMF acknowledged the government’s efforts to stabilize the economy through measures such as discontinuing the Central Bank’s financing of fiscal deficits, eliminating fuel subsidies, and improving the operation of the foreign exchange market, it noted that the benefits of these reforms have not trickled down to the broader population.
Schimmelpfennig emphasized in the statement that despite some progress, poverty and food insecurity levels remain high among Nigerians. The IMF highlighted the need for redirecting savings from fuel subsidy removal towards essential development expenditures and expanding cash transfer programs to support vulnerable households facing hunger.
Furthermore, the IMF commended the CBN for its data-driven approach to interest rate decisions, citing it as effective in addressing inflation and managing macroeconomic risks. The Fund recommended that the central bank articulate a disinflationary trajectory to enhance investor confidence and stabilize inflation expectations.
Despite acknowledging advancements in certain areas, the IMF cautioned that Nigeria’s economic future remains uncertain. Factors such as declining oil prices and global risks pose continuous threats to the country’s fiscal and external balance. The IMF urged the government to intensify structural reforms and promote private sector-led economic growth to mitigate these risks.
The Article IV consultation serves as part of the IMF’s regular monitoring of member economies. The outcomes of the mission will be compiled into a formal report for review by the IMF Executive Board, subject to management approval.
