…As poverty rate hits 63%
…Foreign debt to hit $72.6bn after 2027 polls
The International Monetary Fund, (IMF), has revealed that poverty in Nigeria rose to 63% under the administration of President Bola Tinubu, while an estimated 27 million Nigerians experienced food insecurity during the latter part of 2025 despite improvements in key macroeconomic indicators.
The Fund disclosed this in a statement issued on Tuesday in Washington, DC, USA, where it assessed Nigeria’s economic performance and reform efforts over the past three years.
According to the IMF, although recent economic reforms have strengthened macro-economic stability and improved the country’s resilience, the benefits have yet to translate into better living conditions for millions of Nigerians.
The Fund noted that poverty reached 63% under the national poverty line, while food insecurity remained widespread among vulnerable households.
The IMF warned that rising global fuel, food and fertiliser prices could further worsen inflationary pressures, deepen poverty and increase food insecurity across the country. “Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience”, the Fund stated.
The Fund reported that Nigeria’s gross foreign reserves rose to $46bn in 2025 from $40bn at the end of 2024, driven by a current account surplus, non-resident investments in the Central Bank of Nigeria (CBN) open market instruments, and a successful Eurobond issuance. It also disclosed that net international reserves increased significantly from $23bn in 2024 to $35bn at the end of 2025.
Despite these gains, the Fund said economic conditions remained difficult for many Nigerians, particularly low-income households grappling with high food and transportation costs.
The IMF estimated Nigeria’s economic growth at 4% in 2025, and projected a modest increase to 4.1k in 2026. However, it noted that rising living costs continued to place pressure on households and businesses.
On fiscal performance, the Fund estimated that Nigeria’s consolidated government deficit widened to 4.4% of Gross Domestic Product (GDP) in 2025. It identified uncertainty in global fuel and food prices as a major risk to Nigeria’s economic outlook and warned that persistent inflation could further erode household incomes. It also highlighted insecurity as a significant threat to economic activity and citizens’ welfare.
On monetary policy, the Fund commended Nigerian authorities for efforts to curb inflation and advised the CBN to maintain a tight monetary policy stance until inflationary pressures are firmly contained.
The IMF further praised Nigeria’s commitment to exchange rate reforms and noted that the country’s financial system remains resilient, supported by the ongoing recapitalisation of banks. However, it urged regulators to remain vigilant against emerging financial risks and accelerate the implementation of global banking standards.
The Fund reiterated that structural reforms in governance, security, electricity, agriculture, infrastructure and human capital development remain critical to achieving inclusive growth and reducing poverty across the country.
