IMF Reports Rising Poverty Amid Nigeria's Economic Reforms

The International Monetary Fund (IMF) stated that Nigeria's economic reforms are producing positive macroeconomic outcomes, but poverty is on the rise, affecting 63% of the population by the end of 2025. President Bola Tinubu, who took office three years ago, removed costly fuel subsidies that artificially kept petrol prices low for decades and liberalized the exchange rate.

Despite these reforms, the IMF warns that 27 million people will face food insecurity in the coming year. The report highlights that inflation has accelerated to an annual rate of 15.7% as of April, attributed partly to higher fuel prices linked to ongoing conflicts in the Middle East.

Economic growth is projected to reach 4.1% this year and 4% in 2025. The IMF cautions that rising costs for food, fertilizers, and fuel could intensify inflationary pressures on poor households, exacerbating poverty and food insecurity in Nigeria as the country heads into elections in January when Tinubu seeks re-election for a second term.