IMF (2).webp
The Digest:

Nigeria received mixed assessments at the World Bank-IMF Annual Meetings in Washington, with the IMF upgrading the country's growth forecast to 3.9% for 2025 while warning that debt servicing costs and oil price volatility threaten economic stability. Despite acknowledging reform gains, the Fund emphasized that fiscal fragility remains a critical vulnerability requiring urgent revenue mobilization and spending discipline.

Key Points:
  • IMF upgraded Nigeria's 2025 growth forecast to 3.9% from 3.4%.
  • The Fund warned that rising debt costs are crowding out development spending.
  • Fiscal deficit projected to increase from 2.9% to 3.7% of GDP in 2026.
  • CBN Governor Cardoso reported inflation dropped to 18.02% in September.
  • Foreign reserves now exceed $43 billion, providing 11 months of import cover.
  • Nigeria maintains a 6% trade surplus driven by export diversification.
  • IMF urged digital tax reforms and avoidance of non-concessional borrowing.
While Nigeria's reform efforts have drawn international praise, sustaining progress requires navigating significant fiscal pressures and implementing deeper structural changes.

Sources: Vanguard