IMF Hails CBN Reforms, Attributes Drop in Inflation to Naira Stability
The International Monetary Fund (IMF) has commended Nigeria’s monetary and fiscal authorities for implementing critical reforms that have boosted macroeconomic stability and driven down inflation to 23 percent.
In its Article IV report released Tuesday, the IMF said Nigeria’s Central Bank maintained an appropriately tight monetary policy stance and urged it to stay the course until disinflation is fully entrenched. The Fund praised recent reforms in the foreign exchange market, noting that enhanced price discovery and liquidity have helped stabilise the naira and restore investor confidence.
It also applauded the discontinuation of deficit monetisation and the ongoing recapitalisation of the banking sector. The Fund endorsed CBN’s push for financial inclusion and capital market expansion, and called for stronger risk-based supervision of fintechs, consumer lending schemes, and crypto operations.
The report highlighted Nigeria’s improved foreign reserves position, strong current account surplus, and increased portfolio inflows. It noted that real GDP growth hit 3.4% in 2024, driven by higher oil output and a vibrant services sector, and is projected to remain around 3.5% in the medium term, supported by domestic refinery operations and continued reforms.
However, the IMF warned that rising poverty and food insecurity remain pressing challenges, urging the government to intensify efforts to boost inclusive growth and strengthen social safety nets.
