By Babatunji Wusu| Nigeria’s sweeping economic reforms are beginning to deliver positive results by strengthening economic stability and improving investor confidence, according to the International Monetary Fund (IMF). However, the Fund cautioned that millions of Nigerians continue to face severe economic hardship despite the progress.
Following the completion of its Article IV consultation, the IMF said reforms introduced over the past three years have helped Africa’s largest economy become more resilient to external shocks. The institution noted that recent policy measures have improved key macroeconomic indicators, although poverty and food insecurity remain major concerns.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience. Still, conditions for many Nigerians remain difficult,” the IMF stated.
According to the report, Nigeria economic reforms have contributed to greater stability, but poverty has risen to 63 per cent based on the national poverty line. The IMF also estimated that around 27 million Nigerians experienced food insecurity during the latter part of 2025.
Since assuming office in May 2023, President Bola Tinubu has introduced several measures aimed at attracting investment and accelerating growth. These include the removal of fuel subsidies, exchange rate unification, tighter monetary policies, tax reforms and the rebasing of the country’s Gross Domestic Product. Recent initiatives have also focused on recapitalising the banking and insurance sectors.
While the Nigeria economic reforms have earned praise from international financial institutions, they have also contributed to a rising cost of living, driven by higher fuel prices and increasing food costs.
The IMF projected economic growth of 4.1 per cent in 2026, up slightly from its forecast of 4 per cent for 2025. It also warned that global developments, including tensions involving the United States, Israel and Iran, could threaten recent gains.
Responding to the report, Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele described the assessment as an independent endorsement of the government’s reform agenda. He said the administration remains focused on ensuring that Nigeria economic reforms translate into lower inflation, more jobs, higher incomes and improved living standards for citizens.
