- The Nigerian authorities have taken vital steps to stabilize the financial system, improve resilience, and help progress. These reforms have put Nigeria in a greater place to navigate the exterior setting.
- The macroeconomic outlook is marked by important uncertainty. Elevated international danger sentiment and decrease oil costs impression the Nigerian financial system.
- Macroeconomic insurance policies have to additional strengthen buffers and resilience, cut back inflation, and help personal sector-led progress.
An Worldwide Financial Fund staff, led by Axel Schimmelpfennig, IMF mission chief for Nigeria, visited Lagos and Abuja on April 2–15 to carry discussions for the 2025 Article IV Consultations with Nigeria. The staff met with Minister of Finance and Coordinating Minister of the Financial system Wale Edun, Minister of Agriculture and Meals Safety Abubakar Kyari, Central Financial institution of Nigeria Governor Yemi Cardoso, senior authorities and central financial institution officers, the Ministry of the Atmosphere, the personal sector, academia, labor unions, and civil society. On the finish of the go to, Mr. Axel Schimmelpfennig, issued the next assertion:
“The Nigerian authorities have taken vital steps to stabilize the financial system, improve resilience, and help progress. The financing of the fiscal deficit by the central financial institution has ceased, pricey gas subsidies had been eliminated, and the functioning of the overseas alternate market has improved. Good points have but to profit all Nigerians as poverty and meals insecurity stay excessive.
”The outlook is marked by important uncertainty. Elevated international danger sentiment and decrease oil costs impression the Nigerian financial system. The reforms since 2023 have put the Nigerian financial system in a greater place to navigate this exterior setting. Wanting forward, macroeconomic insurance policies have to additional strengthen buffers and resilience, whereas creating enabling circumstances for personal sector-led progress.
“The authorities communicated to the mission that they may implement the 2025 finances in a way that’s aware of the decline in worldwide oil costs. A impartial fiscal stance would help financial coverage to convey down inflation. To safeguard key spending priorities, it’s crucial that fiscal financial savings from the gas subsidy removing are channeled to the finances. Specifically, changes ought to shield essential, growth-enhancing funding, whereas accelerating and broadening the supply of money transfers underneath the World Financial institution-supported program to offer aid to these experiencing meals insecurity.
“A decent financial coverage stance is required to firmly information inflation down. The Financial Coverage Committee’s data-dependent strategy has served Nigeria properly and can assist navigate elevated macroeconomic uncertainty. Saying a disinflation path to function an intermediate goal may help anchor inflation expectations.”
Distributed by APO Group on behalf of Worldwide Financial Fund (IMF).
