The International Monetary Fund (IMF) has lauded Nigeria for making meaningful progress following a series of significant structural reforms to restore financial discipline and credibility.<\/p>\n
According to the IMF\u2019s latest Article IV Consultation, Nigeria\u2019s authorities have implemented bold and politically difficult policies that have \u201cimproved macroeconomic stability and enhanced resilience.\u201d<\/p>\n
The IMF noted that a critical pillar of Nigeria\u2019s economic reset has been the restoration of central bank independence.<\/p>\n
The Central Bank of Nigeria (CBN) has curtailed the use of the \u201cWays and Means\u201d facility, an emergency funding channel that ballooned beyond statutory limits, cutting advances by nearly 90 percent as of April 2025.<\/p>\n
This demonstrates the \u201cdiscontinuation of deficit monetisation\u201d and a step to \u201cstrengthen central bank governance to set the institutional foundation for inflation targeting,\u201d the IMF said.<\/p>\n
The CBN\u2019s commitment to price stability is yielding tangible results, with headline inflation dropping to 22.9 percent in May 2025, down from above 40 percent.<\/p>\n
The IMF noted that the Central Bank is \u201cappropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched.\u201d<\/p>\n
The IMF also praised reforms to the foreign exchange market that supported price discovery and liquidity.<\/p>\n
The CBN, under the leadership of Governor Olayemi Cardoso, dismantled the long-standing multiple exchange-rate regime, replacing it with a \u201cwilling-buyer, willing-seller\u201d framework supported by a digital trading platform (B-Match).<\/p>\n
The results have been transformative, with gross and net international reserves increasing in 2024, and a strong current account surplus and improved portfolio inflows.<\/p>\n
The FX premium has fallen from over 60 percent to below 3 percent, and FX inflows surged to $6.9 billion in Q1 2025.<\/p>\n
External reserves climbed to a peak of $40.9 billion at the end of 2024, providing over eight months of import cover. \u201cReforms to the FX market and foreign exchange interventions have brought stability to the naira,\u201d the IMF noted.<\/p>\n
Nigeria\u2019s successful return to the Eurobond market in January 2025, its first issue in four years, reflects strengthened investor confidence and a resumption of portfolio inflows, the IMF said.<\/p>\n
The Fund also recognized actions to strengthen the banking system, including the ongoing process of increasing banks\u2019 minimum capital, and welcomed efforts to boost financial inclusion and promote capital market development.<\/p>\n
The CBN\u2019s recapitalisation plan will see banks\u2019 minimum capital raised significantly by March 2026, ensuring banks can absorb future shocks, deepen credit access, and support the planning for a $1 trillion Nigerian economy.<\/p>\n
Governor Cardoso\u2019s team is also expanding access to banking services for previously excluded demographics through digital platforms and financial literacy programs.<\/p>\n
While progress has been made, the IMF noted that further significant challenges remain, including infrastructure deficits, insecurity, and fiscal slippages.<\/p>\n
\u201cNimble policymaking is needed to navigate this fast-moving and volatile environment,\u201d the IMF said, emphasizing the importance of strong policy coordination and communication.<\/p>\n
Reflecting on the IMF report, the CBN Governor Olayemi Cardoso commented: \u201cAt a time of global uncertainty, this assessment reaffirms that responsible, forward-looking policy choices matter.<\/p>\n
\u201cIt affirms that Nigeria is regaining credibility, anchoring expectations, and laying the foundation for inclusive, long-term growth.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Monetary Fund (IMF) has lauded Nigeria for making meaningful progress following a series of significant structural reforms to restore financial discipline and credibility. According to the IMF\u2019s latest Article IV Consultation, Nigeria\u2019s authorities have implemented bold and politically difficult policies that have \u201cimproved macroeconomic stability and enhanced resilience.\u201d The IMF noted that a […]<\/p>\n","protected":false},"author":2,"featured_media":8100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-8099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/comments?post=8099"}],"version-history":[{"count":1,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8099\/revisions"}],"predecessor-version":[{"id":8101,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8099\/revisions\/8101"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media\/8100"}],"wp:attachment":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media?parent=8099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/categories?post=8099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/tags?post=8099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}