The International Monetary Fund (IMF) has commended economic reforms carried out by the Nigerian government, noting improvements in macroeconomic stability, but cautioned that more than 60 percent of Nigerians now live in poverty.
Since taking office just over three years ago, President Bola Tinubu has implemented several major policy changes, including the removal of the decades-long fuel subsidy, the introduction of a flexible naira exchange rate, and a comprehensive overhaul of the nation’s tax system.
Economists have largely described these reforms as overdue. Yet, the IMF highlighted that by the end of 2025, 63 percent of Nigerians were living below the poverty line, with over 27 million people experiencing food insecurity.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF said in a statement following its annual review of Nigeria’s economy. “Still, conditions for many Nigerians remain difficult.”
Poverty has been rising in Africa’s most populous nation for years. The World Bank reported that 61 percent of Nigerians lived in poverty in 2024, up from 40 percent in 2019. The majority of this increase occurred prior to Tinubu’s tenure. Widespread insecurity, particularly in northern regions where much of Nigeria’s food is produced, continues to pose risks to both people and economic activity.
Inflation in Nigeria accelerated to an annual rate of 15.7 percent in April 2026, reaching a five-month high. Analysts linked the spike partly to higher fuel costs driven by ongoing conflict in the Middle East. Despite these challenges, economic growth is projected to reach 4.1 percent this year, slightly up from four percent in 2025.
The IMF warned that while higher prices for food, fertilizer, and fuel could increase government revenues, they may also worsen inflationary pressures on low-income households, potentially deepening poverty and food insecurity.
As Nigeria heads toward elections in January, President Tinubu seeks a second term amid these economic and social challenges.
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