Nigeria: IMF says Nigeria’s reforms are working, but poverty still rising
By Zuleihat Owuiye, Nigeria
The International Monetary Fund on June 9 said reforms implemented by the Nigerian government over the past three years have strengthened the economy, but warned that poverty continues to increase, with more than 60 percent of Nigerians now living below the poverty line.
Since President Bola Tinubu took office in 2023, his administration has removed the fuel subsidy, liberalised the exchange rate, and overhauled the tax system. Economists have described the changes as long overdue.
Despite the policy shifts, poverty has continued to rise. The IMF said 63 percent of the population was living in poverty by the end of 2025, and more than 27 million people faced food insecurity during the year. The World Bank had earlier reported that about 61 percent of Nigerians lived in poverty, up from 40 percent in 2019, noting that three-quarters of that increase occurred before Tinubu’s administration.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF said after its annual review of Nigeria’s economy. “Still, conditions for many Nigerians remain difficult.”
The Fund also flagged insecurity as a major risk, particularly in the north where much of the country’s food is produced. It noted that inflation accelerated to 15.7 percent year-on-year in April, a five-month high, partly driven by higher fuel prices linked to the war in the Middle East.
Economic growth is projected at 4.1 percent for 2026, after 4.0 percent in 2025. The IMF cautioned that while higher oil, food, and fertiliser prices could boost revenues for Africa’s largest oil producer, they could also intensify inflationary pressures on poor households, “potentially aggravating poverty and food insecurity.
