Nigeria economic policies paying off, says IMF
Nigeria’s economic policies and reforms have brought visible results, the International Monetary Fund (IMF) has said. Its Director, African Department, Abebe Selassie said the effects of sound domestic policy choices
Nigeria’s economic policies and reforms have brought visible results, the International Monetary Fund (IMF) has said.
Its Director, African Department, Abebe Selassie said the effects of sound domestic policy choices instituted by Nigerian fiscal and monetary authorities were increasingly visible.
Selassie spoke yesterday during the presentation of the Regional Economic Outlook for Sub-Saharan Africa, at the ongoing IMF/World Bank annual meetings in Washington DC.
According to him, macroeconomic reforms and stabilisation efforts, including strengthening of fiscal positions, have created conditions for stronger growth and lower inflation.
He pointed out that exchange rate realignments after foreign exchange (forex) market reforms, reductions in fuel subsidies are some of the visible gains, adding that Nigeria had also recently began addressing long-standing macroeconomic imbalances, laying the foundations for growth.
He said: “Countries such as and Nigeria have reaped the benefits of macroeconomic reforms, exchange rate realignments, subsidy reduction and strength in monetary policy frameworks. In short 2025 was a year of hard won stabilisation gains, and policymakers across the region deserve credit for achieving them.”
He said the United States-Israel-Iran war is a major new external shock as oil, gas and fertilizer prices have surged.
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“Shipping costs have risen. Trade with Gulf partners has been disrupted. Tourism and emphasis are being squeezed. Financial conditions have heightened, particularly for fuel importing countries,” Selassie said.
He explained that the policy choices that are being made in the region at present, will continue to determine the continent’s economic future.
He said the IMF stands ready to support the countries in the region with financing policy development.
He said what is important was not whether Nigeria borrows abroad or domestically, but its ability to keep the level of debt manageable relative to debt service capacity.
He advised Nigeria to conduct liability management operations to enable it ascertain how it intends to borrow for optimal benefits.
Selassie added that Sub-Saharan Africa entered 2026 reaping the benefits of hard-won stabilisation gains after a strong 2025.
He said: “Economic activity accelerated broadly across country groups, with regional growth estimated at about 4.5 percent —the fastest in a decade—reflecting favorable external factors and good policies, particularly in several large economies. Inflation moderated through the end of 2025, because of lower global food and oil prices, easing exchange rate pressures, and appropriately tight monetary stances in many countries.
“Fiscal positions improved, supported by stronger growth and favorable exchange rate developments. But the war in the Middle East has clouded the outlook. Oil, gas, and fertilizer prices, together with shipping costs, have risen sharply. Furthermore, the shock has disrupted the trade with Gulf partners, reduced tourist arrivals, and is likely to dent remittances to some countries”.
