The International Monetary Fund (IMF) has advised the Nigerian government to intensify its efforts on structural economic reforms to boost growth. In its recently released World Economic Outlook report for October 2025, the Fund noted that the global economy is adjusting to a new landscape shaped by policy measures. The IMF urged policymakers to restore confidence through credible, transparent, and sustainable policies, emphasizing the importance of trade diplomacy, macroeconomic adjustment, and fiscal buffer rebuilding.

The global growth forecast was revised upward in the latest report, with projections indicating a slowdown from 3.3 percent in 2024 to 3.2 percent in 2025 and 3.1 percent in 2026. Advanced economies are expected to grow around 1.5 percent, while emerging markets and developing economies are projected to grow just above 4 percent. Inflation is expected to decline globally, although it may remain above target in some countries, such as the United States.

The IMF revised Nigeria’s real GDP growth rate to 4.2 percent for 2026, up from 3.9 percent in 2025. The country’s real GDP growth was 4.1 percent in 2024. The Financial Counsellor and Director of Monetary and Capital Markets, Tobias Adrian, stated that a depreciating exchange rate is not necessarily negative and can help restore equilibrium. The IMF praised Nigeria’s efforts to strengthen its policy frameworks, including monetary policy and revenue collection, which have contributed to lower inflation and improved foreign exchange reserve positions.

The IMF officials highlighted the importance of exchange rates as a natural buffer to adjust to external shocks. They emphasized that a depreciating exchange rate can be beneficial in restoring balance and competitiveness within the domestic economy. The IMF supports Nigeria’s transition to a more flexible exchange rate regime, which is seen as a vital reform to enhance the country’s economic resilience.

Nigeria has made significant progress in increasing transparency around its foreign exchange operations and reserve positions, according to the IMF. The country has also improved its capacity for revenue collection, which, combined with tighter monetary policy measures, has helped reduce inflation and bolster external reserves. The IMF’s report and recommendations are expected to inform Nigeria’s economic policy decisions and reforms in the coming years.