Nigeria: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nigeria

International Monetary Fund

No 2025/157, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that the Nigerian authorities have implemented major reforms over the past two years which have improved macroeconomic stability and enhanced resilience. The authorities have removed costly fuel subsidies, stopped monetary financing of the fiscal deficit and improved the functioning of the foreign exchange market. Investor confidence has strengthened, helping Nigeria successfully tap the Eurobond market and leading to a resumption of portfolio inflows. Fiscal performance improved in 2024. Revenues benefited from naira depreciation, enhanced revenue administration and higher grants, which more-than-offset rising interest and overheads spending. Downside risks have increased with heightened global uncertainty. Further improving security and cutting red tape on trade should boost output in the near term. Improving governance, upgrading infrastructure, addressing deep rooted problems in the power sector, increasing education and health spending, and fostering climate change adaptation would boost growth and help exit fragility.

Keywords: safeguards policy; safeguards recommendation; monitoring of the Central Bank of Nigeria; CBN's credibility; exchange rate volatility; Oil prices; Anti-money laundering and combating the financing of terrorism (AML/CFT); Energy subsidies; Global; Africa (search for similar items in EconPapers)
Pages: 85
Date: 2025-07-02
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