Intensify Structural Reforms, IMF Tells Nigeria, Says Real GDP To Rise In 2026
THECONSCIENCE NG reports that the International Monetary Fund (IMF) has advised the Nigerian government and those of other emerging economies to redouble efforts on structural economic reforms to shore up growth.
In its newly released World Economic Outlook for October 2025 report, the Fund also noted that global economy was adjusting to a landscape reshaped by new policy measures.
It urged policymakers to restore confidence through credible, transparent, and sustainable policies.
“Trade diplomacy should be paired with macroeconomic adjustment. Fiscal buffers should be rebuilt. Central bank independence should be preserved. Efforts on structural reforms should be redoubled.”
It revised global growth upward in the latest World Economic Outlook (WEO), relative to the April 2025 WEO, but said growth would continue to mark a downward revision relative to the pre-policy-shift forecasts.
“So, you know, a depreciating exchange rate is not necessarily a bad thing. It may actually be a good thing to restore equilibrium.
“And we have indeed seen in Nigeria, you know, many steps to strengthen policy frameworks, such as on the monetary policy side. And you know, we generally do recommend moving towards more flexible exchange rates.
“And yeah, in addition to monetary policy actions, revenue collection has strengthened in Nigeria, and transparency in terms of FX reserve positions has improved.
“I think all of this has contributed to lower inflation from more than 30% last year to 23% this year, as well as improved FX reserve positions in Nigeria.
So the direction of travel appears to be positive.”
During the meeting, the country also earned IMF’s praise for its revenue drive, foreign exchange, and reserves management.
Those who addressed journalists at the session included: Tobias Adrian, financial counsellor and director of the IMF’s Monetary and Capital Markets Department (MCM); Vamvakidis Athanasios, deputy director of the department; and Jason Wu, assistant director. The briefing was moderated by Meera Louis, communications officer at the IMF.
During the discussion, the IMF officials highlighted that movements in exchange rates play a critical role as a natural buffer that helps economies adjust to external shocks.
They explained that a depreciating exchange rate is not inherently negative and can, in fact, be beneficial in restoring balance and competitiveness within the domestic economy.
The IMF further observed that Nigeria has implemented important policy steps aimed at strengthening its macroeconomic framework, particularly in the area of monetary policy.
It reiterated its support for Nigeria’s transition toward a more flexible exchange rate regime, describing it as a vital reform that aligns with the broader goal of enhancing the country’s economic resilience.
According to the IMF officials, Nigeria has not only improved its capacity for revenue collection but has also made significant progress in increasing transparency around its foreign exchange operations and reserve positions.
These actions, combined with tighter monetary policy measures by the Central Bank of Nigeria (CBN), IMF said, have helped to reduce inflation from above 30 percent last year to around 23 percent this year while also bolstering the nation’s external reserves.
