The International Monetary Fund (IMF) has raised concerns over increasing levels of poverty and food insecurity in Nigeria, despite the country’s ongoing economic reforms aimed at stabilizing its economy and fostering growth.
In its latest report on Nigeria’s economic outlook, the IMF acknowledged the federal government’s recent policy measures—such as fuel subsidy removal, exchange rate unification, and renewed commitments to fiscal discipline—as bold steps in the right direction. However, the Fund warned that these reforms, though necessary, have contributed to a sharp rise in living costs, leaving many Nigerians struggling to afford basic necessities.
“The social impact of these reforms has been significant,” the IMF said, noting that inflation, particularly food inflation, has reached critical levels, eroding household purchasing power and deepening poverty.
Nigeria’s annual inflation rate climbed above 30% in March 2025, with food inflation surging past 40%, according to data from the National Bureau of Statistics. The IMF emphasized that while macroeconomic reforms are crucial for long-term stability, urgent and targeted interventions are needed to cushion vulnerable populations from the short-term shocks.
The report urged the Nigerian government to scale up social protection programs, including cash transfers and food assistance schemes, to mitigate the hardship faced by millions of citizens. It also called for increased investment in agriculture, education, and healthcare to support inclusive growth.
President Bola Ahmed Tinubu’s administration has defended its economic agenda, insisting that the reforms are essential to rescue the nation from fiscal crisis and stimulate investor confidence. However, widespread public frustration and protests in some regions highlight the growing pressure on the government to act swiftly in addressing hunger and unemployment.
The IMF reaffirmed its support for Nigeria’s economic transformation but stressed that success will depend on how effectively the government balances structural adjustments with human-centered policies.
“Nigeria’s future is promising,” the report concluded, “but reforms must go hand-in-hand with social support to ensure no one is left behind.”
