The International Monetary Fund (IMF) has recently highlighted Nigeria’s progress in implementing bold economic reforms, while stressing the need for continued efforts to achieve sustainable growth. During the IMF’s 2024 Article IV consultation with Nigeria, the organization praised key reforms such as revenue mobilization, improved governance, and expanded social safety nets, especially in the face of significant economic challenges like inflation and food insecurity.
Dr. Christian Ebeke, the IMF’s Resident Representative for Nigeria, emphasized that sustaining these reforms could result in economic growth between 5% and 8% annually, which is critical for lifting millions of Nigerians out of poverty. He also highlighted the importance of addressing governance and business regulation bottlenecks, which could further boost Nigeria’s economic output. By reducing these barriers by just 25%, Nigeria could potentially increase its growth rate by an additional two percentage points annually, further pushing towards 6% growth.
However, the IMF warns that maintaining macroeconomic stability will require careful sequencing and communication of reforms to manage risks effectively. Monetary policies must continue to combat inflation, while fiscal policies should focus on strengthening revenue collection to fund social and development spending.
This combination of strong governance, business regulation reform, and targeted social programs will be crucial to unlocking Nigeria’s growth potential and improving the living standards of its citizens.