Nigeria's economic reforms are improving stability and investor confidence, according to the IMF's latest assessment.
The International Monetary Fund (IMF) has affirmed that Nigeria’s economic reforms are strengthening macroeconomic stability, restoring investor confidence, and improving the country’s medium-term growth prospects.
The Federal Government disclosed this in response to the IMF’s 2026 Article IV Mission report, which assessed the impact of reforms introduced under President Bola Tinubu’s administration.
According to the government, the IMF acknowledged improvements in foreign exchange market operations, stronger external reserves, enhanced fiscal management, and increased resilience within the banking sector.
The Fund also highlighted major policy measures, including the removal of fuel subsidies, the end of deficit financing through the Central Bank, foreign exchange market liberalisation, and efforts to improve fiscal discipline.
The government said these reforms have reduced economic vulnerabilities and strengthened Nigeria’s capacity to withstand external shocks.
Despite global uncertainties and rising energy and food prices linked to tensions in the Middle East, the IMF observed that Nigeria’s foreign exchange market has remained relatively stable, with the parallel market premium staying below five per cent and investor confidence holding firm.
The Federal Government noted that higher global oil prices could provide additional opportunities through increased export earnings, stronger fiscal revenues, and improved foreign exchange inflows.
To leverage these opportunities, it said efforts are ongoing to raise crude oil production, expand domestic refining capacity, boost gas exports, and attract further investment into the energy sector.
While acknowledging concerns over poverty and food insecurity, the government pointed to improvements in economic indicators, including nearly 10 per cent growth in per capita income in 2025 and ongoing programmes targeted at vulnerable households.
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These interventions include direct cash transfers, support for small businesses, student loans through the Nigerian Education Loan Fund (NELFUND), consumer credit initiatives, healthcare investments, and livelihood support schemes.
The government also highlighted continued investments in agriculture through the Renewed Hope National Agricultural Mechanisation Programme aimed at improving productivity, strengthening value chains, expanding irrigation, and enhancing food security.
In addition, it welcomed the IMF’s recognition of progress in revenue mobilisation and public financial management reforms, including new tax measures, digital revenue collection systems, and increased transparency in public finance.
Looking ahead, the government said the IMF projects Nigeria’s economy to grow above four per cent in the medium term, supported by stronger reserves, increased investment, and improved government revenues.
It added that recent sovereign credit rating upgrades further reflect growing confidence in the country’s economic direction.
According to the government, the ultimate goal of the reforms remains improving the welfare of Nigerians through lower inflation, job creation, higher incomes, and expanded economic opportunities.
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