- The International Monetary Fund has urged Nigeria to leverage technology to expand its tax revenue base to ensure economic resilience
- It also charged African countries to formulate and adopt home-grown monetary policies
- The IMF stressed the need for African nations to deepen intra-regional trade and remove obstacles that limit regional trading and economic integration
The International Monetary Fund (IMF) has urged the Federal Government of Nigeria to leverage technology to expand its tax revenue base and curb tax evasion, as part of fiscal reforms to strengthen the country’s economic resilience.
The Managing Director of the IMF, Kristalina Georgieva, stated this at a news conference in Washington, DC, on the sidelines of the 2025 IMF Spring Meeting.
Georgieva said it was important for Nigeria and other African countries to leverage digital tools to reduce tax evasion and improve compliance.
She noted that the continuous fall in global oil prices puts pressure on the budgets of oil-exporting nations like Nigeria, necessitating a move away from overdependence on oil revenue.
“Countries like Nigeria must broaden their tax revenue base. It is essential not just for short-term budget support, but for building long-term economic resilience.
“Technology offers tremendous opportunities to strengthen revenue collection. When deployed effectively, it can reduce leakages, increase efficiency, and promote fairness,” Georgieva stated.
IMF charges Africa on home-grown monetary policies
The IMF also charged African governments to adopt home-grown monetary policies, taking cognisance of the continent’s realities rather than copying those of other regions.
She urged African countries to tackle corruption, promote transparency, and adopt sound economic governance that works for their respective economies.
Georgieva stressed that effective monetary and fiscal policies must work simultaneously to ensure sustainable growth across Africa.
“We are no more in a place where you can look at the book of the central bank of the neighbouring country and say, ‘Oh, they are doing this; I will do the same.’
“You have to really assess domestic resource mobilisation and your inflationary pressures and do the right thing for your country,” she said.
Need to deepen intra-regional trade
Georgieva further stressed the need for African nations to deepen intra-regional trade and remove obstacles that limit regional trading and economic integration.
Citing the Association of Southeast Asian Nations (ASEAN), she encouraged African countries to adopt collaborative frameworks that enhance regional supply chains and shared infrastructure to deepen intra-regional trade and cooperation
“Sometimes there are infrastructure obstacles; the World Bank is working on reducing these infrastructure obstacles to growth and trade.
“If Africa can remove these hurdles, it can unlock massive economic opportunities,” she said.
Georgieva highlighted the vast economic potential Africa has to offer to the world, including minerals, natural resources, and a young population.
She said, “Africa has so much to offer to the world. The continent’s youthful energy, combined with innovation and sound policy, can drive transformative growth.”
The IMF boss recommended that such African countries as Nigeria, Egypt, Ghana, and Côte d’Ivoire should continue on the path of strengthening their countries’ buffer levels.
She explained that these buffers are crucial for absorbing shocks from global economic downturns or commodity price volatility.
“I think a more unified, more collaborative continent can go a long way to becoming an economic powerhouse,” she said.
Georgieva also highlighted the ripple effects of global tariffs on African economies, warning that while the impact might not be immediate or direct, the indirect consequences could significantly hamper growth.
IMF charges Nigeria on prudent spending, fiscal reforms to ensure economic stability
Meanwhile, TheRadar earlier reported that the International Monetary Fund (IMF) called on the Nigerian government to spend prudently and strengthen its fiscal institutions to ensure long-term economic stability.
The charge was given by Davide Furceri, the Division Chief for Nigeria in the IMF’s Fiscal Affairs Department, on Wednesday, April 23, at the fiscal monitor press briefing during the 2025 IMF/World Bank spring meetings in Washington, DC, United States.
