The International Monetary Fund (IMF) has called on the Nigerian government to adopt a more prudent approach to public spending, as the country navigates persistent economic headwinds. In its latest advisory, the IMF stressed the importance of efficient fiscal management, especially in light of Nigeria’s growing debt burden and rising inflation. The Fund highlighted that sustainable economic growth will require tighter control over expenditures and improved revenue generation strategies.
Nigeria, Africa’s largest economy, has been grappling with several macroeconomic challenges, including a depreciating naira, high debt servicing costs, and fuel subsidy pressures. The IMF noted that while some recent reforms show promise—such as the unification of exchange rates—continued progress depends on the government’s ability to prioritize essential spending and eliminate wasteful practices. It urged authorities to direct resources toward sectors that deliver the greatest socioeconomic impact, particularly infrastructure, health, and education.
The Fund also emphasized the need for stronger domestic revenue mobilization. It recommended expanding the tax base, improving tax compliance, and reducing reliance on oil revenues. According to the IMF, enhancing fiscal transparency and accountability would boost investor confidence and strengthen public trust in the government’s economic agenda. These reforms, it said, are critical to stabilizing the economy and unlocking long-term growth.
In conclusion, the IMF reiterated its support for Nigeria’s economic reform efforts but warned that achieving stability will require deliberate and disciplined financial governance. The Fund encouraged the federal and state governments to work collaboratively, focus on results-driven policies, and avoid short-term populist spending that could derail progress. With effective planning and a commitment to fiscal prudence, Nigeria can steer itself toward a more resilient and inclusive economic future
