The International Monetary Fund (IMF) has warned that Nigeria’s rigorous economic reforms, introduced two years ago, have yet to show tangible benefits for the country’s poor. Despite significant efforts by President Bola Ahmed Tinubu’s administration to stabilize the economy, many Nigerians are grappling with an unprecedented cost-of-living crisis.
Tinubu launched an extensive reform program in May 2023 aimed at addressing Nigeria’s fiscal imbalances. Both the Nigerian government and the IMF agree that these reforms are crucial for the nation’s economic health. However, the IMF’s mission chief for Nigeria, Axel Schimmelpfennig, noted that the immediate gains have not reached the average citizen.
While the reforms are seen as pivotal steps to stabilize the economy, Schimmelpfennig pointed out that poverty and food insecurity remain rampant. This stark reality persists despite improvements in economic resilience and growth potential, achieved through measures such as the liberalization of the naira and the reduction of fuel subsidies.
The IMF also warned of the challenges Nigeria faces due to global economic uncertainty and declining oil prices. Though the reforms have positioned the economy to better withstand external shocks, the IMF emphasized that significant hurdles remain.
In October, the World Bank reported a sharp increase in poverty, with over half of Nigeria’s population—129 million people—living below the poverty line. As the country continues to navigate these difficult changes, the full impact of the reforms remains uncertain.