By Abubakar Yunusa
The International Monetary Fund on Tuesday said Nigeria’s economy had become more resilient following major reforms introduced by President Bola Tinubu’s administration, but warned that poverty and food insecurity remain widespread across the country.
The IMF disclosed that about 63 per cent of Nigerians were living in poverty by the end of 2025, despite improvements in key macroeconomic indicators driven by government reforms.
The global financial institution made this known in a statement issued after concluding its annual review of the Nigerian economy.
According to the IMF, reforms implemented over the past three years, including the removal of fuel subsidy, exchange rate liberalisation and tax system restructuring, have helped strengthen the economy and improve resilience against shocks.
It stated, “Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience.”
The Fund, however, noted that the gains had yet to translate into better living conditions for millions of Nigerians.
“Still, conditions for many Nigerians remain difficult,” it added.
The IMF revealed that more than 27 million Nigerians faced food insecurity during the year, underscoring the growing hardship confronting households across the country.
The report comes amid persistent concerns over the rising cost of living, inflationary pressures and declining purchasing power.
Although economists have largely backed the reforms as necessary steps to address long-standing distortions in the economy, many Nigerians continue to grapple with soaring food, transport and energy costs.
The IMF also identified insecurity, particularly in northern Nigeria where a significant portion of the country’s food is produced, as a major threat to economic activity and livelihoods.
It warned that attacks by armed groups could further undermine agricultural production and worsen food shortages.
The Fund noted that inflation climbed to 15.7 per cent in April, marking a five-month high.
Analysts linked the increase partly to higher fuel prices triggered by the ongoing conflict in the Middle East.
Despite the challenges, the IMF projected that Nigeria’s economy would grow by 4.1 per cent in 2026, up from four per cent recorded in 2025.
However, it cautioned that rising costs of food, fertiliser and fuel could deepen hardship for vulnerable households, even as higher oil prices may boost government revenues.
The IMF warned that sustained inflationary pressures could further aggravate poverty levels and food insecurity across the country.
The latest assessment comes ahead of Nigeria’s January general election, where Tinubu is expected to seek a second term in office.
