The International Monetary Fund (IMF) has acknowledged that economic reforms introduced by the Nigerian government have improved the country’s macroeconomic stability, but warned that poverty and food insecurity remain major challenges.
In a statement issued on Tuesday following its annual review of Nigeria’s economy, the IMF said reforms implemented under President Bola Tinubu’s administration over the past three years have strengthened economic resilience and delivered positive macroeconomic outcomes.
Since assuming office, Tinubu has removed the long-standing fuel subsidy, liberalised the foreign exchange market, and introduced tax reforms aimed at restructuring the economy.
According to the IMF, these policy measures have helped improve economic fundamentals, although living conditions remain difficult for many Nigerians.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF stated.
“Still, conditions for many Nigerians remain difficult.”
The Fund noted that poverty levels have continued to rise, with about 63 per cent of Nigerians living below the poverty line by the end of 2025.
It also revealed that more than 27 million people experienced food insecurity during the year.
The IMF’s assessment aligns with previous findings by the World Bank, which reported that approximately 61 per cent of Nigerians were living in poverty, compared to 40 per cent in 2019.
The World Bank had also noted that most of the increase in poverty occurred before Tinubu assumed office in 2023.
The IMF further identified widespread insecurity, particularly in northern Nigeria where much of the country’s food production takes place, as a significant risk to both livelihoods and economic activities.
According to the latest official figures, inflation rose to 15.7 per cent in April, marking a five-month high. Analysts attributed the increase partly to rising fuel prices linked to the ongoing conflict in the Middle East.
Despite these challenges, the IMF projected that Nigeria’s economy would grow by 4.1 per cent in 2026, up from 4.0 per cent recorded in 2025.
However, the Fund warned that while higher prices for food, fertiliser and fuel could boost government revenue as Africa’s largest oil producer, they could also worsen inflationary pressures on vulnerable households.
The IMF cautioned that such pressures could further deepen poverty and food insecurity if not properly managed.
Nigeria is expected to head to the polls in January, with President Tinubu seeking a second term in office.