The International Monetary Fund (IMF) has said economic reforms introduced by President Bola Tinubu have strengthened Nigeria’s macroeconomic outlook, while warning that poverty and food insecurity remain major challenges across the country.
In a statement released on Tuesday following its annual review of Nigeria’s economy, the IMF noted that reforms implemented over the past three years have improved economic resilience but have yet to ease hardship for millions of Nigerians.
IMF Commends Economic Reforms
Since assuming office in 2023, Tinubu’s administration has implemented several economic measures, including the removal of fuel subsidy, exchange rate liberalisation, and tax reforms.
According to the IMF, these policies have contributed to stronger macroeconomic performance and improved economic stability.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the organisation stated.
Poverty and Food Insecurity Remain High
Despite the economic gains, the IMF said living conditions remain difficult for a large segment of the population.
The organisation reported that poverty reached 63 percent of the population by the end of 2025, while an estimated 27 million Nigerians experienced food insecurity during the same period.
“Still, conditions for many Nigerians remain difficult. Poverty reached 63 percent (national poverty line) and 27 million Nigerians are estimated to have faced food insecurity in the fall of 2025,” the statement added.
The IMF’s assessment aligns with previous findings by the World Bank, which reported that poverty levels in Nigeria have steadily increased over recent years.
Security Challenges Threaten Economic Progress
The IMF also identified insecurity as a major risk to economic growth, particularly in northern Nigeria, where much of the country’s agricultural production takes place.
According to the organisation, ongoing attacks by armed groups continue to disrupt economic activities and food production.
The IMF warned that rising costs of food, fertiliser and fuel could worsen inflationary pressures and deepen hardship for vulnerable households.
Growth Forecast Remains Positive
Despite the challenges, the IMF projected that Nigeria’s economy would grow by 4.1 percent in 2026, following an estimated growth rate of four percent in 2025.
The organisation noted that higher global commodity prices could increase government revenues due to Nigeria’s status as Africa’s largest oil producer.
However, it cautioned that the same factors could push up living costs and further strain household incomes.
The IMF’s report comes as political activities begin to intensify ahead of Nigeria’s next general election, where President Tinubu is expected to seek a second term in office.