By Elizabeth Godwin
Despite bold economic reforms by the Tinubu administration, Nigeria has seen rising poverty and food insecurity over the past two years, according to the International Monetary Fund’s (IMF) latest assessment.
This was revealed in the 2025 Article IV Mission report released on Wednesday, July 2, following consultations between the IMF Executive Board and Nigerian authorities.
The IMF acknowledged several key reforms introduced by the federal government, including the removal of costly fuel subsidies, an end to the Central Bank’s monetary financing of the fiscal deficit, and liberalisation of the foreign exchange market. These measures, the report noted, have boosted investor confidence, reopened Nigeria’s access to Eurobond markets, and revived portfolio inflows.
However, the board warned that the reforms have coincided with increased hardship for Nigerians. “Poverty and food insecurity have risen, and the government is now focused on raising growth,” the report stated. While GDP growth accelerated to 3.4% in 2024—mainly from higher hydrocarbon output and a strong services sector—agricultural performance remained weak due to security challenges and falling productivity.
The IMF observed that tighter macroeconomic policies, improved food supply, and currency stabilisation helped slow inflation to 23.7% year-on-year in April 2025, down from a 31% average in 2024. Yet they cautioned that external risks, including oil price volatility and global financing conditions, could undermine these gains.
Looking ahead, the Fund urged agile policymaking to protect macroeconomic stability, stimulate inclusive growth, and tackle persistent poverty, while welcoming the Central Bank of Nigeria’s steps towards inflation targeting and improved governance.
