The International Monetary Fund (IMF) has proffered solutions to Nigeria’s high food insecurity and poverty in the country, focusing on three key priorities, as inflation still exceeds 20 percent despite economic reforms.
According to the IMF report derived from the Staff Report for the 2025 Article IV Consultation with Nigeria, released on Monday, the Fund highlighted that while recent reforms are beginning to yield results, poverty and food insecurity remain high in the country.
“While progress has been encouraging, significant challenges remain. Inflation still exceeds 20 percent. Poor infrastructure, especially for electricity, inhibits economic activity. Poverty and food insecurity remain high. Nigeria lacks an effective social safety net to cushion the impact of shocks on the most vulnerable,” IMF said.
It stressed that the country needs to focus on three key priorities. First, the country needs to make growth more inclusive by scaling up the existing cash transfer system.
It highlighted that this is necessary as the country needs stronger and more sustained growth to lift millions out of poverty and food insecurity.
The second priority focuses on the country establishing an effective budget framework as delivering effective investments in people requires realistic budget assumptions, strong expenditure management, and transparent implementation and reporting which will help strengthen accountability.
Third, it emphasized a continued increase in domestic revenues, citing Nigeria’s substantial funding needs in growth-enabling areas like agriculture, infrastructure, electricity, and climate adaptation.
Noting that the government’s tax reforms will make it easier to pay taxes and ensuring that all tax debtors pay.
It acknowledged the current administration’s bold reforms over the last two years noting that since the implementation of these reforms, the international reserves increased, there has been better access to foreign exchange in the official market, and there have been recent upgrades by rating agencies.
However, it emphasized the need for continued reform for the country to achieve its full potential and ensure inclusive growth.
