The International Monetary Fund (IMF) has expressed deep concern over Nigeria’s persistent high inflation and widespread poverty, calling for intensified reforms to unlock the country’s economic potential.
In an article titled How Nigeria Can Unleash Its Economic Potential, released on Monday, the IMF warned that despite recent policy shifts, inflation has remained stubbornly above 20 per cent, while weak infrastructure and a lack of a comprehensive social safety net continue to stifle growth.
The Fund emphasised the need for an effective budget framework with realistic assumptions, strong expenditure management, and transparent implementation, noting that these measures are essential to ensure accountability and channel resources freed up from fuel subsidy removal into priority investments.
It also advised the Central Bank of Nigeria (CBN) to maintain a firm monetary policy stance to decisively curb inflation, reduce uncertainty, and help restore macroeconomic stability.
To achieve sustainable development, the IMF urged the government to accelerate domestic revenue generation, including tax reforms to expand the tax base, improve ease of compliance, and ensure that all taxpayers fulfil their obligations.
The Fund stressed that higher domestic revenue is vital for investing in agriculture, electricity, and climate adaptation.