The International Monetary Fund (IMF) has charged Nigeria to ensure its macroeconomic policies strengthen buffers and resilience, reduce inflation, and support private sector-led growth.

In its report. IMF Staff 2025 Article IV Mission to Nigeria, observed that the Nigerian authorities have indeed taken important steps to stabilize the economy, enhance resilience, and support growth.

It acknowledged that the reforms have put Nigeria in a better position to navigate the external environment.

It stated that the macroeconomic outlook is marked by significant uncertainty, elevated global risk sentiment and lower oil prices impact the Nigerian economy.

The team which was led by Axel Schimmelpfennig, IMF mission chief for Nigeria, visited Lagos and Abuja on April 2–15 to hold discussions for the 2025 Article IV Consultations with Nigeria.

The team met with Minister of Finance and Coordinating Minister of the Economy Wale Edun, Minister of Agriculture and Food Security Abubakar Kyari, Central Bank of Nigeria Governor Yemi Cardoso, senior government and central bank officials, the Ministry of the Environment, the private sector, academia, labour unions, and civil society.

In its report, the team said the reforms since 2023 have put the Nigerian economy in a better position to navigate the external environment.

“Looking ahead, macroeconomic policies need to further strengthen buffers and resilience, while creating enabling conditions for private sector-led growth.

“The authorities communicated to the mission that they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices. A neutral fiscal stance would support monetary policy to bring down inflation. To safeguard key spending priorities, fiscal savings from the fuel subsidy removal must be channelled to the budget. In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported program to provide relief to those experiencing food insecurity,” the team reported.

The IMF team noted that a tight monetary policy stance is required to firmly guide inflation down.

It explained that the Monetary Policy Committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.

“Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations,” it said.