IMF Applauds Nigeria’s Economic Reforms, Revenue Growth, and FX Transparency Amid Improved Outlook
Story: written by Okafor Joseph October 15,2025
The International Monetary Fund (IMF) has commended Nigeria for making notable progress in boosting revenue collection and enhancing transparency in its foreign exchange (FX) operations and reserves management, marking a positive shift in the country’s economic direction.
The commendation came during a press briefing on the Global Financial Stability Report at the World Bank/IMF Annual Meetings in Washington, D.C., on Tuesday.
IMF officials present included Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department; Vamvakidis Athanasios, Deputy Director; and Jason Wu, Assistant Director. The session was moderated by Meera Louis, the Fund’s Communications Officer.
According to the IMF, Nigeria’s recent policy actions—especially the drive for fiscal discipline, foreign exchange reforms, and improved monetary management—have begun yielding tangible results. The Fund noted that exchange rate adjustments serve as natural buffers to global shocks and can help restore competitiveness and macroeconomic balance.
The IMF further lauded Nigeria’s efforts to strengthen its macroeconomic framework, supporting the government’s shift toward a more flexible exchange rate regime, which aligns with the country’s long-term goal of achieving economic stability and resilience.
Officials also observed that Nigeria’s revenue mobilisation capacity has improved significantly, while greater FX transparency and better reserve management have helped to stabilise the naira and reduce inflation, which dropped from over 30% last year to about 23% this year. These reforms, backed by the Central Bank of Nigeria’s tighter monetary policies, have also strengthened investor confidence and improved external reserves.
“The direction of travel appears to be positive,” one IMF official remarked, expressing optimism about Nigeria’s reform momentum.
IMF Raises Nigeria’s Growth Forecast
In recognition of these improvements, the IMF has revised Nigeria’s economic growth forecast upward to 3.9% in 2025, an increase of 0.5 percentage point, citing stronger macroeconomic stability and better investment sentiment. The Fund also adjusted its 2026 projection to 4.2%, up by 0.9 percentage point, attributing the gains to improved oil output, security around production hubs, and a more stable fiscal environment.
Similarly, Nigeria’s 2024 GDP growth estimate was upgraded to 4.1%, reflecting the recent rebasing of the economy, which captured more activities in the informal sector and provided a more accurate picture of national output.
Broader Regional Perspective
On a regional scale, the IMF noted that Sub-Saharan Africa continues to demonstrate resilience, with reform-driven economies such as Nigeria and Ethiopia leading recovery efforts. However, it cautioned that several resource-dependent and conflict-affected nations still face major challenges.
The Fund urged African governments to maintain fiscal discipline, improve debt transparency, and accelerate structural reforms, particularly in tax policy and domestic revenue generation, to sustain growth and reduce vulnerability to external shocks.
The IMF concluded that Nigeria’s reform trajectory, if maintained, could set a new benchmark for economic governance in Africa, positioning the nation for stronger, more inclusive, and sustainable growth in the years ahead.
