At the 2025 IMF World Bank meetings, Nigeria earned praise for its economic reforms but faced warnings over debt and oil-sector risks.
The IMF raised Nigeria’s 2025 growth forecast to 3.9%, citing stronger oil output and investor confidence. However, it cautioned that debt costs and fiscal pressures could derail progress if not carefully managed.
IMF Africa Director Abebe Selassie commended subsidy removal and exchange rate reforms but urged “credible debt management and revenue efficiency.”
CBN Governor Olayemi Cardoso said inflation had dropped to 18.02%, reserves exceeded $43bn, and the naira had stabilised. He reaffirmed the government’s resolve to sustain reforms.
The IMF projected Nigeria’s fiscal deficit to rise to 3.7% of GDP in 2026, warning that debt servicing is crowding out development spending. It also urged diversification and action against illicit financial flows.
Kristalina Georgieva said, “Nigeria is on the right path, reforms are difficult but essential to secure lasting prosperity.”
