FG Says IMF Report Confirms Economic Reforms Are Working
By Patience Ikpeme
The Federal Government has welcomed the latest assessment of Nigeria’s economy by the International Monetary Fund (IMF), saying the report confirms that ongoing reforms are improving economic stability, restoring investor confidence and positioning the country for stronger long-term growth.
Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the IMF’s 2026 Article IV Mission report provides independent support for the economic measures introduced under the administration of President Bola Ahmed Tinubu.
In a statement issued on Tuesday, Oyedele said the IMF found that reforms implemented over the past three years have produced positive macroeconomic outcomes and improved Nigeria’s ability to withstand external economic shocks.
According to him, the Fund pointed to improvements in the foreign exchange market, stronger external reserves, ongoing fiscal and revenue reforms, resilience within the banking sector and increasing 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.
He added that the IMF’s findings show Nigeria is now in a stronger position to manage global economic uncertainties than it was in recent years.
Oyedele said the government was encouraged by the IMF’s acknowledgement that difficult policy decisions, including the removal of fuel subsidies, the end of deficit monetisation, foreign exchange market liberalisation and tighter fiscal discipline, have helped reduce economic vulnerabilities and rebuild confidence in the economy.
He noted that the IMF report concluded that Nigeria now faces global shocks with stronger policy frameworks and financial buffers.
The minister said recent tensions in the Middle East have created fresh challenges for economies around the world through rising energy prices, higher food costs, tighter financial conditions and disruptions to global supply chains.
Despite those pressures, he said the IMF recognised Nigeria’s ability to maintain relative stability.
“While these developments present inflationary pressures, the IMF acknowledged that Nigeria has demonstrated notable resilience. Despite significant increases in global energy prices, the foreign exchange parallel market premium has remained below five percent, sovereign spreads have remained broadly stable, and investor confidence has been preserved,” he said.
Oyedele also noted that the IMF believes Nigeria stands to benefit from higher global energy prices through increased export earnings, improved government revenues and stronger foreign exchange inflows.
He said the Federal Government intends to take advantage of these opportunities by boosting crude oil production, expanding domestic refining capacity, increasing gas production and exports and attracting more investment into the energy sector.
On poverty and food security, the minister acknowledged that major challenges remain despite signs of economic progress.
He said the government noted the IMF’s concerns regarding poverty and food insecurity and agreed that economic stability alone would not automatically improve living conditions unless growth becomes more inclusive.
According to him, Nigeria recorded almost 10 per cent growth in per capita income in 2025, an indication that poverty levels are beginning to decline, but more work remains to ensure that the benefits of economic reforms reach ordinary citizens.
He said the government is continuing to strengthen social intervention programmes, including direct cash transfers to vulnerable households, support for small businesses, student loans through the Nigerian Education Loan Fund, consumer credit initiatives, healthcare investments and other programmes aimed at improving livelihoods and expanding economic opportunities.
In the agricultural sector, Oyedele said the government is increasing investment through the Renewed Hope National Agricultural Mechanisation Programme and other initiatives designed to improve productivity, expand irrigation and dry-season farming, strengthen agricultural value chains and improve access to financing and farm inputs.
He said these measures are expected to help moderate food inflation, create jobs and increase rural incomes.
The minister also welcomed the IMF’s recognition of progress in domestic revenue mobilisation and public financial management reforms.
He said the implementation of new tax laws, digitalisation of revenue collection processes, improved transparency and stronger accountability mechanisms would continue to strengthen fiscal sustainability while making the tax system fairer and more efficient.
On the IMF’s recommendations regarding fiscal reporting and budget transparency, Oyedele said the government has already begun taking steps to improve data integrity, strengthen coordination among institutions, enhance transparency in budget implementation and deepen public financial management reforms.
He added that efforts are ongoing to improve fiscal reporting systems and ensure that Nigeria’s economic and fiscal statistics meet international standards.
Looking ahead, the minister said the IMF’s medium-term outlook for Nigeria remains positive, with projections showing economic growth above four per cent, stronger foreign reserves, rising investments and improved government revenues.
He noted that public debt has declined relative to Gross Domestic Product (GDP), while reserve buffers have strengthened considerably.
According to him, these developments, alongside recent sovereign credit rating upgrades by international rating agencies, reflect the increasing resilience of the Nigerian economy and the impact of ongoing reforms.
Oyedele said the Federal Government remains committed to maintaining macroeconomic stability, strengthening fiscal discipline, deepening structural reforms, improving the investment climate and creating jobs.
“While challenges remain, the direction is clear and the foundations are stronger. The ultimate objective of these reforms is not merely improved economic indicators, but better outcomes for all Nigerians – lower inflation, decent jobs, higher incomes, greater economic opportunity, and a better quality of life,” he said.
