The International Monetary Fund (IMF) has urged Nigeria to strengthen non-oil revenue collection, improve governance and attract private investment to sustain economic growth, create jobs and ease pressure on public finances.
Zeine Zeidane, Director of the IMF’s African Department, said Nigeria must use the gains from ongoing economic reforms to expand fiscal space for critical sectors, including education, healthcare and infrastructure.
Speaking during a press briefing on the regional economic outlook for sub-saharan africa at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, Zeidane stressed the need for reforms that improve the business environment and encourage private-sector investment.
The IMF has raised Nigeria’s 2026 growth forecast to 4.2 per cent and projected growth of 4.3 per cent in 2027, supported by improved macroeconomic stability and favourable oil prices.
However, Zeidane said stronger growth must translate into better living conditions, with targeted support for vulnerable households facing high food and energy costs.
The Fund advised against broad-based energy subsidies, recommending temporary and targeted assistance instead, arguing that general subsidies can disproportionately benefit wealthier households and place additional pressure on public finances.
The IMF also called for greater debt transparency, stronger economic fundamentals and deeper domestic capital markets to help Nigeria diversify its financing sources and reduce borrowing costs.
It said sustaining reforms while protecting vulnerable citizens would be crucial to turning improved economic indicators into inclusive growth and job creation.
