₦airaland Forum

The International Monetary Fund (IMF) says Nigeria will navigate global shocks due to the reforms implemented by President Bola Tinubu.

Axel Schimmelpfennig, IMF mission chief for Nigeria, spoke during a visit to Lagos and Abuja from April 2 to 15, where he led a delegation to hold discussions for the 2025 Article IV Consultations with Nigeria.

The team met with Wale Edun, minister of finance and coordinating minister of the economy; Abubakar Kyari, minister of agriculture and food security; Yemi Cardoso, governor of the Central Bank of Nigeria (CBN); ministry of environment and other stakeholders in the private sector, academia, labour unions, and civil society.

In a statement by the IMF, Schimmelpfennig said authorities had taken “important steps” to stabilise the economy, enhance resilience, and support growth.

The steps, he noted, include ending the CBN’s financing of the fiscal deficit, removing costly petrol subsidy, and improving the functioning of the foreign exchange market.

“The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth,” Schimmelpfennig said.

“The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved. Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.

”The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy.

“The reforms since 2023 have put the Nigerian economy in a better position to navigate this external environment. Looking ahead, macroeconomic policies need to further strengthen buffers and resilience, while creating enabling conditions for private sector-led growth.

“The authorities communicated to the mission that they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices.”

TIGHT MONETARY POLICY REQUIRED TO CURB INFLATION’

The IMF official also recommended a neutral fiscal stance to support monetary policy in bringing down inflation.

He added that fiscal savings from petrol subsidy reforms should be channelled into the national budget to protect critical investments.

Schimmelpfennig further advised that the CBN maintain a tight monetary policy stance to curb inflation.

“In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported program to provide relief to those experiencing food insecurity,” he said.

“A tight monetary policy stance is required to firmly guide inflation down.”

Schimmelpfennig said the monetary policy committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.

Poverty and insecurity remain high

jmoore:
That's the main point for the masses. Tinubu is a monumental disaster.

In a statement by the IMF, Schimmelpfennig said authorities had taken “important steps” to stabilise the economy, enhance resilience, and support growth.

ThinkSmarter:
Tinubu maybe running Nepotistic government.
But, he is at least running with the best team.
Tinubu may have ugly pasts and still a political cartel, but the truth is that he is a political genius.
Not only that he is good in politics, he is also good in Accounting/Business Administration.
Running a country is different from running a religious ministry.
So, I am not expecting Tinubu to be a pulpit figure.
One need to be street credible, smart, rugged, tough, yet civilized enough to be a Commander in Chief of the Armed Forces.
And also oversea the country's Economy.
Tinubu is my President and I am proud of
him.
He is taking Nigeria to the path of Economic Growth and Prosperity.
His macro Economic Reforms is giving...
He got my vote by 2027, God's willing.


Note: I am from SE Nigeria

femisplash:
Basically, the economy is healthy enough to pull through in the face of global uncertainties. Imagine us being heavily dependent on petrol Importation, paying as huge as $20billion for fuel subsidy and then international supplies took a hit?.
Imagine us paying 97% of our revenue for debt payments and then oil revenues dipped and our foreign exchange took a massive hit?.
And then imagine we found ourselves back to where we once were when 30 states couldn't pay workers salaries because of global meltdown such that our revenues was massively affected?. It would have been absolutely catastrophic for us a a nation right now.
It's no fault of yours when global uncertainties bump into you when you least expected, however, it's all fault of yours when you were caught least prepared.
With global power play which is drastically affecting global demand and supply, Nigeria could beat her chest and say she is as healthy as holding up as much.

ThinkSmarter:
Tinubu maybe running Nepotistic government.
But, he is at least running with the best team.
Tinubu may have ugly pasts and still a political cartel, but the truth is that he is a political genius.
Not only that he is good in politics, he is also good in Accounting/Business Administration.
Running a country is different from running a religious ministry.
So, I am not expecting Tinubu to be a pulpit figure.
One need to be street credible, smart, rugged, tough, yet civilized enough to be a Commander in Chief of the Armed Forces.
And also oversea the country's Economy.
Tinubu is my President and I am proud of
him.
He is taking Nigeria to the path of Economic Growth and Prosperity.
His macro Economic Reforms is giving...
He got my vote by 2027, God's willing.


Note: I am from SE Nigeria

femisplash:
Basically, the economy is healthy enough to pull through in the face of global uncertainties. Imagine us being heavily dependent on petrol Importation, paying as huge as $20billion for fuel subsidy and then international supplies took a hit?.
Imagine us paying 97% of our revenue for debt payments and then oil revenues dipped and our foreign exchange took a massive hit?.
And then imagine we found ourselves back to where we once were when 30 states couldn't pay workers salaries because of global meltdown such that our revenues was massively affected?. It would have been absolutely catastrophic for us a a nation right now.
It's no fault of yours when global uncertainties bump into you when you least expected, however, it's all fault of yours when you were caught least prepared.
With global power play which is drastically affecting global demand and supply, Nigeria could beat her chest and say she is as healthy as holding up as much.