IMF: Nigeria's economic reforms strengthen economy, but poverty increases to 63%

The International Monetary Fund reported that Nigeria's economic reforms have strengthened the country's economy, but also noted that poverty has increased, affecting 63% of the population by the end of 2025. President Bola Tinubu's administration, in office for over three years, has implemented measures such as removing fuel subsidies, liberalizing the exchange rate, and overhauling the tax system. Despite these policy changes, which economists consider long overdue, more than 27 million people faced food insecurity in 2025. The IMF stated that while reforms have improved macroeconomic outcomes and built resilience, conditions remain difficult for many Nigerians. Poverty has been rising for years, with the World Bank previously reporting 61% of the population in poverty in 2022, up from 40% in 2019, with three-quarters of that increase occurring before Tinubu took office. Widespread insecurity from armed groups, particularly in the north, poses another risk to people and economic activity. Inflation accelerated to 15.7% annually in April, partly due to higher fuel prices. Economic growth is projected at 4.1% this year, up from 4% in 2025. The IMF warned that while higher costs for food, fertilizer, and fuel could boost Nigeria's revenues as Africa's largest oil producer, they could also intensify inflationary pressures on poor households, potentially worsening poverty and food insecurity. Nigeria is scheduled for presidential elections in January, where Tinubu is seeking re-