TINUBU'S REFORMS FALL SHORT ON POVERTY RELIEF - IMF

 

TINUBU'S REFORMS FALL SHORT ON POVERTY RELIEF - IMF

The International Monetary Fund (IMF) has revealed that the economic reforms implemented by President Bola Ahmed Tinubu’s administration have yet to deliver tangible relief to ordinary Nigerians, despite being in place for nearly two years.

Following the conclusion of its 2025 Article IV Consultations with Nigeria, the IMF team, led by Mission Chief Axel Schimmelpfennig, acknowledged that the country has taken bold steps to stabilize the economy. These include ending the Central Bank’s financing of the budget deficit, removing fuel subsidies, and improving operations in the foreign exchange market.

However, the IMF emphasized that the outcomes of these reforms have not trickled down to the general population. It noted that poverty and food insecurity remain alarmingly high, highlighting the widening gap between economic policy and lived realities for millions of Nigerians.

“The reforms have placed Nigeria in a stronger position to handle external shocks,” the report stated. “Yet, the benefits are not being widely felt, and macroeconomic uncertainty remains high due to global risks and falling oil prices.”

The IMF recommended a more strategic approach to fiscal management, suggesting that savings from the fuel subsidy removal be redirected toward critical infrastructure and welfare programs—especially the World Bank-backed cash transfer initiative aimed at supporting food-insecure households.

Additionally, the Fund urged the government to maintain a tight monetary policy to bring down inflation and stabilize prices. It also encouraged policymakers to introduce a clear disinflation roadmap to guide expectations and build economic confidence.

During the consultation process, the IMF team engaged with key stakeholders across government ministries, the Central Bank, civil society, and the private sector. The Fund concluded that continued commitment to transparent, inclusive reforms is essential for long-term recovery and sustainable growth.

While the Nigerian government has signaled its intention to implement the 2025 budget with caution—especially in light of fluctuating oil prices—the IMF cautioned that efforts must remain focused on shielding vulnerable populations and boosting private-sector development.

As Nigeria faces one of its worst cost-of-living crises in decades, all eyes remain on how soon the reforms will begin to translate into real improvement for the everyday citizen.