The International Monetary Fund (IMF) has urged the Nigerian government to revise its 2025 ₦54.99 trillion budget, warning that falling oil prices could undermine its projections and economic targets.
The recommendation comes from the IMF’s Article IV Consultation Report released in Washington, D.C.
The Fund welcomed recent monetary reforms, including the Central Bank’s tight policy stance and exchange rate liberalisation, saying they had attracted capital inflows and stabilised the naira.
“The 2025 budget needs to be recalibrated to lower oil prices,” the report stated, calling for adjustments that reflect market realities.
Growth Expectations Tempered by Rising Risks
The IMF projected Nigeria’s GDP would grow by 3.4% in 2025, driven by higher oil production, a new domestic refinery, and service sector expansion.
But it warned that the pace of growth remains too slow to impact most Nigerians.
“Growth has been steady but too low in per-capita terms, and inflation remains high,” the report said.
It noted that widespread poverty and food insecurity continue, worsened by insecurity and low agricultural productivity.
Inflation eased slightly to 23.7% in April 2025, down from an annual average of 31% in 2024, aided by better food output and exchange rate stability.
Still, the IMF identified downside risks, including oil market volatility, global financing shocks, and worsening security, as threats to economic and financial stability.
CBN, Budget Strategy, and Reform Agenda Applauded
The Fund praised the Central Bank of Nigeria for stopping deficit monetisation and pushing ahead with governance reforms.
“The Central Bank is appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched,” the IMF Directors noted.
They also encouraged the government to fix infrastructure gaps, boost electricity supply, and invest more in health and education.
To support food security and long-term growth, they urged decisive action on insecurity, agricultural reform, and climate resilience.
Reacting to the report, Minister of Finance Wale Edun said the government was proactively implementing the 2025 budget to protect reforms and economic progress.
He assured that Nigeria is keeping a close watch on oil markets and global trade.
“The government continues to monitor developments in the international oil market and global trade environment,” Edun said.
“We are taking responsive measures to mitigate potential risks while maintaining momentum toward inclusive growth.”
Rate, Like 👍, Comment💬, share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
