The International Monetary Fund (IMF) has listed Nigeria among countries failing to achieve desired economic outcomes, despite reforms efforts by the federal government.
According to the IMF’s latest sub-Saharan Africa outlook, Nigeria’s growth rate for 2024 is forecast at just 3.19%, below the region’s average of 3.6%.
In her presentation at the Lagos Business School, IMF Deputy Director Catherine Patillo highlighted that while several countries have made progress in fiscal reforms, Nigeria is not among them. “More than two-thirds of countries have undertaken fiscal consolidation, including improvements in Cote d’Ivoire, Ghana, and Zambia,” she noted.
However, Nigeria’s economic reforms remain stalled, with inflation climbing back up to 33.8% in October, far from the government’s 2024 target of 21%.
The IMF’s report also pointed to Nigeria’s worsening exchange rate instability and its high debt burden, which strains fiscal stability.
The report cited the country’s rising debt service costs, consuming a significant portion of revenue, which hampers development spending.
Patillo acknowledged that many countries in the region are addressing macroeconomic imbalances, with some seeing inflation decline and exchange rates stabilize. However, Nigeria’s inflation remains persistently high, and exchange rate pressures continue to destabilise the economy.
The IMF also warned that political and social pressures in Nigeria are complicating the implementation of necessary reforms. “Resource-intensive countries, like Nigeria, are struggling with slow growth, and domestic financing conditions remain tight,” Patillo explained.
The report suggests Nigeria must rethink its reform strategies to rebuild trust and garner support for deep economic changes.
