IMF says Tinubu’s economic reforms yet to benefit Nigerians

• The International Monetary Fund said the President Bola Tinubu administration’s economic reforms have not yet benefited the average Nigerian
• It said that nearly two years after the introduction of the reforms, poverty and food insecurity remain high
• IMF warned of economic uncertainty, particularly with global trade tensions and falling oil prices

The International Monetary Fund (IMF) says the President Bola Tinubu-led Federal Government's tough economic reforms have not yet benefited the average Nigerian after nearly two years of their introduction.

The IMF disclosed this in a statement on Friday, April 18, by the IMF Mission Chief for Nigeria, Axel Schimmelpfennig.

Schimmelpfennig noted that the government implemented the reforms, including the removal of fuel subsidies, exchange rate unification, and ending the Central Bank of Nigeria’s (CBN) financing of the fiscal deficit, to stabilise the economy and ensure growth.

Recall that the government, the IMF, and the World Bank commended these reforms, stressing that they are necessary to put Nigeria on the path of economic prosperity and ensure adequate utilisation of the country’s public finances.

He, however, noted that these reforms were yet to have the desired effects, particularly on the living conditions of Nigerians, who have had to experience the worst cost-of-living crisis in a generation.

Schimmelpfennig said the government has taken “important steps to stabilise the economy, enhance resilience, and support growth.”

But those “gains have yet to benefit all Nigerians, as poverty and food insecurity remain high,” he added, following nearly two weeks of routine discussions with government officials and civil society representatives in the country.

IMF warns of economic uncertainty

The international finance body further warned of an uncertain outlook for Nigeria’s economy, stressing that the heightened global uncertainty and the continued fall of oil prices will also impact the Nigerian economy.

Schimmelpfennig also noted that the government’s reforms will ensure that the Nigerian economy can withstand such external shocks.

“The outlook is marked by significant uncertainty,” Schimmelpfennig warned.

However, he said Tinubu’s reforms have put the economy in a “better position to navigate this external environment.”

International organisations warned of food insecurity, endemic poverty in Nigeria

International organisations, including PricewaterhouseCoopers International Limited (PwC) and the World Bank, highlighted the impact of the government’s economic policies and reforms, warning that they have escalated food insecurity and poverty.

In its report on the economic outlook for Nigeria in 2025, PwC projected that about 33.1 million Nigerians may fall into food insecurity by 2025, driven by rising inflation, persistent economic hardship, and violence in food-producing regions.

The PwC report also stated that the number of people living below the national poverty line is projected to increase by about 13 million by 2025.

Also, in October 2024, the World Bank reported that poverty in Nigeria had surged over the past six years, now affecting more than half of the population, with 129 million people living in poverty.

Nigerians will get tangible benefits from 2025 reforms, says Information Minister

Meanwhile, TheRadar earlier reported that the Federal Government expressed confidence that the reforms initiated by President Bola Tinubu’s administration will begin to bear fruit in 2025, delivering tangible benefits for Nigerians. 

The Minister of Information and National Orientation, Mohammed Idris, made this assertion during the Ministerial Press Briefing held on Tuesday, March 4, in Abuja.