The International Monetary Fund (IMF) has advised the Nigerian federal government to reconsider its proposed 2025 budget of ₦54.99 trillion, citing lower-than-expected global oil prices.
The recommendation was part of the IMF’s Article IV Consultation Report on Nigeria, released today in Washington, D.C.
Despite the budget concerns, the IMF projects Nigeria’s economy will grow by 3.4% in 2025, driven by increased oil production and declining inflation.
The Fund commended the economic reforms introduced by President Bola Tinubu’s administration, particularly the removal of fuel subsidies and the unification of exchange rates by the Central Bank of Nigeria (CBN), noting that these policies are starting to deliver positive outcomes.
The IMF also praised the CBN for liberalizing the exchange rate and implementing monetary reforms that have helped attract greater capital inflows. It noted that the CBN’s current tight monetary policy stance is appropriate and should be maintained until inflation is firmly under control.
In addition, the Fund acknowledged ongoing efforts to strengthen Nigeria’s banking sector, including the recapitalization of banks. It welcomed initiatives aimed at improving financial inclusion and expanding the capital market.
However, it emphasized the need for stronger risk-based supervision of mortgage and consumer lending programmes, as well as enhanced regulation of fintech and cryptocurrency sectors.
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