The International Monetary Fund (IMF) has said that the depreciation of the Nigerian Naira may serve as a necessary adjustment mechanism and is not inherently harmful to the economy.
Speaking during a press briefing at the IMF–World Bank Annual Meetings in Washington, Tobias Adrian, the IMF’s Financial Counsellor and Director of Monetary and Capital Markets, said exchange rates can play a stabilizing role in economies facing external shocks.
“A depreciating exchange rate is not necessarily a bad thing. It may actually be a good thing to restore equilibrium,” Adrian explained, in response to questions about the Naira’s value. He noted that the Fund generally supports a shift toward more flexible exchange rate regimes.
Adrian acknowledged that Nigeria has made progress in strengthening its policy frameworks. “We’ve seen many steps on the monetary policy side. Revenue collection has improved, and there’s greater transparency in foreign exchange reserve reporting,” he said.
He pointed to signs of improvement in Nigeria’s macroeconomic indicators, including a decline in inflation from over 30% in 2024 to around 23% in 2025. “The direction of travel appears to be positive,” he added.
Despite this progress, Adrian warned that Sub-Saharan Africa, including Nigeria, still faces vulnerabilities. With global financial conditions tightening and capital flows becoming more volatile, countries in the region risk exposure to sudden outflows, especially if underlying economic fundamentals are weak.
He urged governments to maintain strong monetary and fiscal policies, while also investing in structural reforms such as tax mobilization and debt management. “Nigeria is making efforts in these areas, and continued support from the international community will be important,” Adrian said.
Commenting on the global regulatory landscape for digital currencies, Adrian welcomed the introduction of stablecoin regulations in several countries. He cited recent legislation in the United States, as well as existing regulatory frameworks in the European Union and Japan, as examples of progress.
“Globally, there are around $400 billion in outstanding stablecoins, most of which are denominated in U.S. dollars. Regulations are beginning to catch up with the market,” he said.
The IMF, he noted, released a comprehensive policy framework for crypto assets in 2023, which outlines key regulatory principles and recommendations. While implementation differs across countries, Adrian said the overall direction of regulatory efforts is broadly aligned with the Fund’s guidance.
