IMF Staff Completes 2025 Article IV Mission to Nigeria
IMF News, April 18, 2025
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Bibliographic details
- Published: April 18, 2025
Mission visit and procedural details
- An International Monetary Fund team, led by Axel Schimmelpfennig, IMF mission chief for Nigeria, visited Lagos and Abuja on April 2–15 to hold discussions for the 2025 Article IV Consultations with Nigeria.
- Press Release No. 25/114; publication date: April 18, 2025.
- The team met with Minister of Finance and Coordinating Minister of the Economy Wale Edun, Minister of Agriculture and Food Security Abubakar Kyari, Central Bank of Nigeria Governor Yemi Cardoso, senior government and central bank officials, the Ministry of the Environment, the private sector, academia, labor unions, and civil society.
- Media relations contact listed: PRESS OFFICER: Julie Ziegler; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.
Preliminary findings (staff statement highlights)
- “The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth.”
- Key policy actions noted:
- The financing of the fiscal deficit by the central bank has ceased.
- Costly fuel subsidies were removed.
- The functioning of the foreign exchange market has improved.
- Remaining challenges:
- “Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.”
Macroeconomic outlook and risks
- “The outlook is marked by significant uncertainty.”
- Identified external risk factors:
- Elevated global risk sentiment.
- Lower oil prices.
- Assessment of recent reforms:
- “The reforms since 2023 have put the Nigerian economy in a better position to navigate this external environment.”
- Staff view on policy priorities:
- “Looking ahead, macroeconomic policies need to further strengthen buffers and resilience, while creating enabling conditions for private sector-led growth.”
Policy recommendations and operational guidance
- Fiscal policy:
- Authorities communicated they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices.
- A neutral fiscal stance would support monetary policy to bring down inflation.
- “To safeguard key spending priorities, it is imperative that fiscal savings from the fuel subsidy removal are channeled to the budget.”
- Recommended budgetary adjustments should:
- Protect critical, growth-enhancing investment.
- Accelerate and broaden the delivery of cash transfers under the World Bank-supported program to provide relief to those experiencing food insecurity.
- Monetary policy:
- “A tight monetary policy stance is required to firmly guide inflation down.”
- The Monetary Policy Committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.
- Recommendation to announce a disinflation path: “Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”
Next steps and institutional process
- End-of-Mission press releases convey preliminary findings after a visit to a country; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
- Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
IMF Staff Completes 2025 Article IV Mission to Nigeria, Press Release No. 25/114, April 18, 2025.