IMF Staff Country Reports

The 2024 Article IV Consultation discusses that Nigeria, under its new administration, has set out on an ambitious reform path to restore macroeconomic stability and support inclusive growth. The authorities reformed the fuel price subsidies, unified official foreign exchange windows, and are focused on revenue mobilization, governance, and enhancing the monetary and exchange rate policy frameworks, as well as strengthening social safety nets. Near-term risks are tilted to the downside, but determined and well-sequenced implementation of the authorities’ policy intentions would pave the way for faster, more inclusive and resilient growth. Further strengthening bank capitalization and tight supervision are needed to mitigate emerging financial sector stability risks. Improving the functioning of the domestic securities and foreign exchange markets should enhance the monetary transition mechanism and attract capital inflows. Structural reforms can ease near-term policy trade-offs. Nigeria should continue supporting agricultural productivity, sustain actions to reduce oil theft, remove burdensome border procedures, and accelerate climate adaptation measures.