. As North West Govs unveil regional poverty reduction procedure
COMFORT EKELEME, Business Editor
The Federal Government has reaffirmed its commitment to sustaining economic reforms aimed at strengthening macroeconomic stability, accelerating inclusive growth, improving fiscal discipline, and creating jobs, following a positive assessment of Nigeria’s economy by the International Monetary Fund (IMF).
Reacting to the IMF’s 2026 Article IV Mission report, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the assessment validates the administration’s reform agenda and confirms that Nigeria is better positioned to withstand global economic shocks than at any time in recent years.
According to the IMF, reforms implemented over the past two and a half years have improved macroeconomic outcomes, strengthened resilience to external shocks, enhanced foreign exchange market efficiency, boosted external buffers, advanced fiscal and revenue reforms, and reinforced banking sector stability.
Oyedele said the report provides independent confirmation that the reforms introduced under the administration of Bola Ahmed Tinubu are restoring confidence in the economy and laying the foundation for sustainable and inclusive growth.
He noted that the IMF specifically acknowledged the positive impact of key policy measures, including the removal of fuel subsidies, the end of deficit monetisation, foreign exchange market liberalisation, and stricter fiscal discipline.
“The report notes that Nigeria now faces global shocks with stronger policy frameworks and buffers than before,” Oyedele said.
He explained that while the recent Middle East conflict has heightened inflationary pressures globally through rising energy and food prices, tighter financial conditions, and supply chain disruptions, Nigeria has demonstrated considerable resilience.
According to him, despite increases in global energy prices, the foreign exchange parallel market premium has remained below five per cent, sovereign spreads have remained broadly stable, and investor confidence has been preserved.
The minister added that the IMF believes Nigeria is well positioned to benefit from higher energy prices through increased export earnings, stronger fiscal revenues, and improved foreign exchange inflows.
To maximise these opportunities, he said the government remains focused on increasing crude oil production, expanding domestic refining capacity, boosting gas production and exports, and attracting investments across the energy value chain.
While welcoming the IMF’s positive outlook, Oyedele acknowledged the Fund’s concerns over persistent poverty and food insecurity.
He noted that although Nigeria recorded nearly 10 per cent growth in per capita income in 2025, translating into a reduction in poverty levels, the government recognises that macroeconomic stability alone is insufficient without tangible improvements in citizens’ welfare.
The minister said ongoing interventions include targeted cash transfers to vulnerable households, support for small businesses, student financing through the Nigerian Education Loan Fund, consumer credit programmes, healthcare investments, and other initiatives aimed at expanding economic opportunities.
In agriculture, he said the government is scaling up investments through the Renewed Hope National Agricultural Mechanisation Programme and related programmes designed to improve productivity, expand irrigation, strengthen agricultural value chains, enhance access to financing, and improve food security.
He said these measures are expected to help moderate food inflation, create jobs, and raise rural incomes.
Oyedele also welcomed the IMF’s recognition of progress in domestic revenue mobilisation and public financial management reforms, citing the implementation of new tax laws, digitisation of revenue collection systems, improved transparency, and stronger accountability mechanisms.
He assured that the government is taking additional steps to improve fiscal reporting, budget transparency, data integrity, and coordination among relevant institutions to align with international best practices.
Looking ahead, he said the IMF’s medium-term projections reinforce confidence in Nigeria’s economic prospects, with growth expected to remain above four per cent, supported by rising investment, stronger fiscal revenues, and improved external reserves.
He noted that public debt has already declined relative to Gross Domestic Product (GDP), while reserve buffers have strengthened significantly, developments that complement recent sovereign credit rating upgrades and underscore the growing resilience of the Nigerian economy.
Reaffirming the government’s commitment to reform, Oyedele said efforts would continue to focus on improving the investment climate, expanding infrastructure, strengthening human capital development, and supporting private-sector-led growth.
“While challenges remain, the direction is clear and the foundations are stronger. The ultimate objective of these reforms is not merely improved economic indicators, but better outcomes for every Nigerian—lower inflation, decent jobs, higher incomes, greater economic opportunity, and a better quality of life,” he said.
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