The International Monetary Fund (IMF) listed Nigeria among the countries with the lowest level of food security during its recent Article IV consultation with Nigerian authorities. The IMF explained that the spillover effects of the war in Ukraine—mainly higher domestic food prices—exacerbated the pandemic’s impact on the most vulnerable, placing Nigeria at the bottom of food‑security rankings. It emphasized the need to improve agricultural performance to create jobs and enhance food security.
The IMF also highlighted challenges facing Nigeria’s oil sector, noting production and price volatility, while climate‑related natural disasters pose similar risks to agricultural output. To address fiscal pressures, the Fund urged the government to fulfill its commitment to remove fuel subsidies by mid‑2023 as part of a plan to boost well‑targeted social spending.
Regarding monetary policy, the IMF advised the Central Bank of Nigeria to be ready to raise the policy rate if necessary and to develop additional strategies for financing fiscal deficits and phasing out credit‑intervention programmes. It called on the government to complete the securitisation of the apex bank’s existing overdraft stock to the federal government and stressed that the central bank’s budget financing must strictly adhere to statutory limits.
While acknowledging the expansion of Nigeria’s economic recovery, the IMF lamented that the country missed the opportunity to benefit from higher global oil prices.
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