FG Welcomes IMF Endorsement of Economic Reforms, Acknowledges Poverty Challenges

ABUJA, June 9 — The Federal Government has welcomed the latest assessment by the International Monetary Fund (IMF), saying the institution’s positive evaluation of Nigeria’s economic reforms validates the administration’s efforts to restore macroeconomic stability and strengthen the economy.

In a statement issued on Tuesday, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the IMF’s 2026 Article IV Mission Concluding Statement affirmed that the reforms introduced under President Bola Tinubu’s administration were yielding positive results.

According to Oyedele, the IMF acknowledged improvements in Nigeria’s foreign exchange market, stronger external reserves, fiscal reforms, banking sector resilience and broader macroeconomic stability.

“The report provides further independent validation that the bold and necessary reforms undertaken under the leadership of President Bola Ahmed Tinubu are strengthening macroeconomic stability, restoring confidence and laying the foundation for sustainable and inclusive growth,” he said.

The minister noted that the IMF recognised key policy measures, including the removal of fuel subsidies, the end of deficit monetisation, foreign exchange market liberalisation and enhanced fiscal discipline, as significant contributors to reducing economic vulnerabilities and rebuilding investor confidence.

IMF Flags Poverty, Food Insecurity Concerns

Despite the positive assessment, the IMF cautioned that poverty and food insecurity remain major challenges in Nigeria, highlighting concerns that the benefits of recent economic reforms have yet to fully reach many households.

The Fund estimated that about 63 percent of Nigerians currently live below the poverty line, underscoring the difficult living conditions facing millions of citizens despite improvements in key macroeconomic indicators.

Responding to the concerns, Oyedele said the government recognises that macroeconomic stability alone is not enough and must translate into meaningful improvements in the lives of Nigerians.

“The Government acknowledges the IMF’s observation that poverty and food insecurity remain significant challenges. While progress is being made, economic growth must be inclusive and must translate into tangible improvements in the welfare of Nigerians,” he said.

The minister pointed to ongoing social intervention programmes, including direct cash transfers to vulnerable households, support for small businesses, student financing through the Nigerian Education Loan Fund (NELFUND), consumer credit initiatives and healthcare investments.

He added that the government is scaling up agricultural interventions through the Renewed Hope National Agricultural Mechanisation Programme and other initiatives aimed at boosting productivity, strengthening value chains, improving food security and creating jobs.

Government Highlights Resilience Amid Global Uncertainty

The Federal Government said the IMF’s assessment showed that Nigeria is better positioned to withstand external shocks despite emerging global challenges, including the recent conflict in the Middle East, which has contributed to higher energy prices, inflationary pressures and disruptions to global supply chains.

According to Oyedele, the IMF acknowledged Nigeria’s resilience, noting that despite rising global energy prices, the country’s foreign exchange parallel market premium remained below five percent, while sovereign risk spreads remained relatively stable.

The minister added that the IMF projected Nigeria would benefit from stronger export earnings, improved fiscal revenues and increased foreign exchange inflows resulting from higher energy prices.

He said the government remains focused on maximising these opportunities by increasing crude oil production, expanding domestic refining capacity, boosting gas exports and attracting fresh investments across the energy sector.

The government also welcomed the IMF’s recognition of ongoing reforms in domestic revenue mobilisation and public financial management, including the implementation of new tax laws, digitisation of revenue collection systems and measures to improve transparency and accountability.

Oyedele said efforts are underway to strengthen fiscal reporting, improve budget transparency and ensure economic data meets international standards.

The minister expressed confidence in Nigeria’s medium-term economic outlook, citing IMF projections of economic growth above four percent, rising investments, improving fiscal revenues and stronger external reserves.

He added that declining public debt relative to gross domestic product (GDP), improving reserve buffers and recent sovereign credit rating upgrades reflected the growing resilience of the Nigerian economy.

“The ultimate objective of these reforms is not merely improved economic indicators, but better outcomes for every Nigerian — lower inflation, decent jobs, higher incomes, greater economic opportunity and a better quality of life,” Oyedele said.

The Federal Government reiterated its commitment to maintaining macroeconomic stability, deepening structural reforms, attracting investment, improving infrastructure and creating jobs to support long-term economic growth.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.