The International Monetary Fund (IMF) has urged the Nigerian government to intensify structural economic reforms to stimulate growth. In the IMF’s World Economic Outlook report for October 2025, the Fund noted that the global economy is adjusting to a new landscape shaped by policy measures. It called on policymakers to restore confidence through credible, transparent, and sustainable policies, emphasizing trade diplomacy, macro‑economic adjustment, and the rebuilding of fiscal buffers.
The report revised the global growth forecast upward, projecting 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 expand just above 4 percent. Inflation is expected to decline worldwide, though it may remain above target in some countries, such as the United States.
For Nigeria, the IMF raised the real GDP growth estimate to 4.2 percent for 2026, up from 3.9 percent in 2025, after recording 4.1 percent growth in 2024. Financial Counsellor and Director of Monetary and Capital Markets Tobias Adrian explained that a depreciating exchange rate is not necessarily negative; it can help restore equilibrium. The IMF praised Nigeria’s efforts to strengthen policy frameworks, including monetary policy and revenue collection, which have contributed to lower inflation and improved foreign‑exchange reserve positions.
IMF officials highlighted exchange rates as a natural buffer against external shocks, stressing that depreciation can enhance balance and competitiveness within the domestic economy. They support Nigeria’s transition to a more flexible exchange‑rate regime, viewing it as a vital reform for greater economic resilience. According to the IMF, Nigeria has made significant progress in increasing transparency around foreign‑exchange operations and reserve positions, and it has improved its revenue‑collection capacity. Combined with tighter monetary policy, these measures have helped reduce inflation and bolster external reserves. The IMF’s report and recommendations are expected to guide Nigeria’s economic policy decisions and reforms in the coming years.
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