By Chiagoziem Abosi
Edited by Bababunmi Agbebi
The International Monetary Fund (IMF) has commended Nigeria’s recent economic reforms, saying there are improved macroeconomic stability and strengthened investor confidence. However, the global lender warned that poverty, food insecurity, and inflation continue to weigh heavily on millions of Nigerians.
The assessment was contained in the IMF’s latest Article IV Consultation on Nigeria, which reviewed the country’s economic performance and policy direction. The Fund noted that reforms introduced since 2023, including fuel subsidy removal, exchange rate liberalisation, and tighter monetary policies, have helped stabilize parts of the economy and rebuild investor confidence.
According to the IMF, Nigeria’s economy grew by an estimated 4.0 per cent in 2025 and is projected to grow slightly to 4.1 per cent in 2026. The Fund also highlighted improvements in foreign reserves and broader economic resilience.
Despite these gains, the IMF cautioned that many Nigerians have yet to feel the benefits of the reforms. The organisation warned that poverty and food insecurity could worsen in the near term as households continue to face high living costs.
The Fund also urged Nigerian authorities to maintain fiscal discipline, continue structural reforms, and protect social spending aimed at supporting vulnerable citizens. It stressed that efforts to reduce inflation should remain a priority, especially as global fuel and food prices continue to create pressure on household incomes.
For residents of Ikeja and other parts of Lagos, the IMF’s observations reflect a reality many households know well. While economic indicators may show signs of improvement, many families continue to navigate rising costs of transportation, food, healthcare, and housing.
