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  • IMF Says Tinubu’s Reforms Improved Economy as Poverty Rate Climbs to 63%

    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.

  • IMF Raises Alarm as Hunger Risks Deepen Across Nigeria, Africa

    The International Monetary Fund has warned that food insecurity risks are rising across Nigeria and other African countries, with conflict, climate shocks and shrinking aid threatening recent economic gains.

    IMF flags growing risks despite recent growth

    In a new outlook, the IMF said Sub-Saharan Africa entered 2026 on relatively stable footing after recording 4.5 per cent growth in 2025.

    However, the Fund warned that this progress is now under pressure due to global disruptions, including rising commodity prices and fragile fiscal conditions.

    Abebe Aemro Selassie, Director of the IMF’s African Department, said prolonged conflict could weaken growth, push inflation higher and force difficult fiscal adjustments across vulnerable economies.

    Food insecurity expected to worsen

    The IMF stressed that the human impact could be severe, particularly as food prices continue to rise.

    It warned that a 20 per cent increase in global food prices could push over 20 million people into food insecurity, while leaving millions of children at risk of acute malnutrition.

    Nigeria is among countries expected to face a sharp rise, with projections showing an additional 4.1 million people could experience acute hunger in 2026.

    Global hunger remains at critical levels

    Findings from the 2026 Global Report on Food Crises show that 266 million people across 47 countries faced high levels of food insecurity in 2025.

    The report also revealed that 35.5 million children were acutely malnourished, with nearly 10 million suffering severe conditions.

    Experts warned that hunger is no longer driven by short-term shocks but by persistent crises including conflict, inflation and climate change.

    Aid cuts and debt pressures worsen outlook

    The IMF also highlighted a sharp decline in foreign aid, particularly in fragile states, noting that 2025 marked a major drop in support for vulnerable economies.

    At the same time, rising debt levels and higher interest payments are limiting governments’ ability to respond effectively.

    More than one-third of countries in the region are now at high risk of debt distress, with fiscal pressures crowding out essential spending.

    Call for reforms and regional integration

    To address the challenges, the IMF urged African governments to accelerate structural reforms, improve governance and deepen regional trade.

    It noted that stronger integration under the African Continental Free Trade Area could help improve supply chains and boost resilience against future shocks.

    The Fund maintained that without urgent action, the combined impact of conflict, climate pressures and declining aid could further destabilise already vulnerable economies.

  • Nigeria Won’t Seek IMF Loan Despite $50bn Support Plan, Edun Declares

    The Federal Government has ruled out any plan to approach the International Monetary Fund (IMF) for financial support, despite the fund’s proposal to make up to $50 billion available to struggling economies, including countries in sub-Saharan Africa.

    Finance Minister and Coordinating Minister for the Economy, Wale Edun, made this known on Thursday during a press briefing at the ongoing World Bank/IMF Spring Meetings in Washington DC.

    Government takes firm stance

    Edun stated clearly that Nigeria is not considering taking on additional debt from the IMF at this time.

    “Nigeria has no plan at the moment to approach the IMF for any other such burden,” he said while responding to questions from journalists.

    His comments come a day after the IMF disclosed plans to provide between $20 billion and $50 billion in financial support to vulnerable economies in the near term.

    Why IMF funding is on the table

    According to the IMF, the proposed support will cover both expansions of existing programmes and new funding requests from at least a dozen countries, many of them in Africa.

    The move is aimed at cushioning the economic impact of global challenges, including the ongoing crisis in the Middle East.

    Pressure on African economies

    Edun, however, noted that African countries are facing increasing economic pressure despite not being directly responsible for the global crisis.

    He explained that the situation threatens macroeconomic stability, slows growth, and weakens efforts to reduce poverty across the continent.

    “They need and deserve extra help at this time,” the minister said, referring to vulnerable economies, particularly oil-importing nations.

    IMF warns of global slowdown

    IMF Managing Director Kristalina Georgieva also raised concerns about the wider economic impact of global tensions, especially the Middle East conflict.

    She warned that disruptions to supply chains and rising oil prices could slow global growth significantly.

    According to her, global growth is projected to drop from 3.4 percent last year to about 2.1 percent in 2026, with a worst-case scenario of 2 percent if the crisis persists.

    What it means for Nigeria

    While Nigeria is opting out of immediate IMF borrowing, the government’s position suggests a focus on managing existing economic challenges without adding to its debt burden.

    The decision also highlights ongoing concerns about fiscal sustainability and the long-term impact of external loans on the country’s economy.