The International Monetary Fund (IMF) has expressed concerns over Nigeria’s recent economic reforms, noting that they are yet to bring relief to the majority of its population, particularly the poor and food-insecure.

According to the IMF’s latest report on its official website, it acknowledged the steps Nigeria has taken since 2023 to stabilize its economy, but lamented that the reforms were not yet reaching those most in need due to the absence of a strong social protection system.

The analysis, authored by Axel Schimmelpfennig, IMF Mission Chief to Nigeria, and Christian Ebeke, the Fund’s Resident Representative in Nigeria, noted that millions remain affected by poverty and inflation despite progress on policy fronts.

According to the IMF, “Nigeria lacks an effective social safety net to cushion the impact of shocks on the most vulnerable,” urging a rapid scale-up of the country’s cash transfer programme to promote inclusive growth.

The article traced Nigeria’s economic trajectory over the past decade, highlighting how real per capita GDP declined by an average of 0.7 percent each year between 2014 and 2023, while poverty rose to 42 percent by the end of that period. It noted that the current administration inherited this fragile situation.

The Fund credited the Nigerian government with implementing several significant policy shifts, including deregulating the foreign exchange market, eliminating fuel subsidies, and halting Central Bank deficit financing. These efforts, it noted, have improved macroeconomic indicators, including rising foreign reserves and successful reentry into the international capital market.

However, the IMF warned that the economy still faces steep hurdles. Inflation remains persistently high above 20 percent, power infrastructure is weak, and oil revenues—though critical to the national budget—remain vulnerable to external shocks.

To address these challenges, the IMF recommended three key areas for immediate policy focus: boosting economic growth to lift citizens out of poverty, expanding targeted cash assistance, and improving transparency in budget allocations to better support infrastructure and social programmes.

The IMF also stressed the need to increase domestic revenues through tax reforms, which should eventually bring Nigeria’s tax rates in line with regional benchmarks once economic pressures ease and social support mechanisms are fully functional.

The Fund emphasized that savings from fuel subsidy reforms must be redirected toward sectors with direct impact on citizens’ welfare, such as energy, agriculture, and climate resilience.

While acknowledging Nigeria’s potential, the IMF concluded that sustained policy action and protection for the most vulnerable are essential to realize inclusive development.