Nearly two years into President Bola Tinubu’s ambitious economic overhaul, the International Monetary Fund (IMF) has acknowledged the efforts made by Nigeria’s government, but says the impact on ordinary citizens remains limited.
In a statement released Friday, IMF Mission Chief for Nigeria, Axel Schimmelpfennig, noted that while steps taken by the Tinubu administration have improved the country’s macroeconomic position, poverty and food insecurity continue to affect millions.
“The government has taken important steps to stabilise the economy, enhance resilience, and support growth,” Schimmelpfennig said, following a routine visit during which IMF officials met with Nigerian policymakers and civil society groups.
“But these gains have yet to benefit all Nigerians,” he added.
Since taking office in May 2023, President Tinubu has rolled out sweeping reforms aimed at reviving Nigeria’s struggling economy. These include the removal of long-standing fuel subsidies, the liberalisation of the naira, and halting Central Bank funding of fiscal deficits. While the changes were welcomed by international lenders as necessary, they have also pushed living costs sharply upward—squeezing the budgets of millions of families.
The IMF cautioned that Nigeria’s economic future remains uncertain, citing falling global oil prices and ongoing global instability as potential headwinds. Still, Schimmelpfennig said that the country is now better positioned to weather such challenges, thanks to recent reforms.
Critics of the government’s approach argue that while the reforms might strengthen fiscal discipline in the long run, the short-term human cost—marked by spiking inflation and reduced purchasing power—has been severe.
According to a World Bank report from late 2024, more than 129 million Nigerians—over half the population—now live in poverty, with food prices and transportation costs driving the worst cost-of-living crisis in a generation.
While the government insists that reforms are necessary and long overdue, the pressing question remains: how soon will the benefits reach the people who need them most?
