THE International Monetary Fund (IMF) has suggested three ways the Nigerian government could lift millions of its citizens out of hunger and poverty.
It gave this advice in an article titled, ‘How Nigeria Can Unleash Its Economic Potential’, released on Monday, July 7.
The organisation said Nigeria could solve its current challenges of high inflation and widespread poverty, among others, if it focused on these three key priorities.
Firstly, the IMF said the country needed stronger and more sustained growth to lift millions of people out of poverty and food insecurity.
“This does not happen overnight. In the meantime, making growth more inclusive also requires scaling up the existing cash transfer system,” the Bretton Woods financial institution member stated.
Secondly, it suggested that as an essential ingredient for economic development, Nigeria needed an effective budget framework.
“Delivering effective investments in people and infrastructure requires realistic budget assumptions, strong expenditure management, and transparent implementation and reporting—which, in turn, can strengthen accountability.
“For its part, monetary policy should continue to decisively tackle inflation and reduce economic uncertainty,” the IMF said.
Also, the IMF urged the government to continue to increase domestic revenues.
It said this was essential given Nigeria’s substantial funding needs in growth-enabling areas such as agriculture, infrastructure, including access to electricity, and climate adaptation.
It added that the government’s tax reforms would make it easier to pay taxes and ensure that everyone who owes taxes pays them.
“Over time, once the ongoing cost-of-living crisis abates and the cash transfer system is fully operational, there will be room to align tax rates with those in neighbouring countries.
“For now, the share of revenue that goes to interest spending leaves too little for investment in people and infrastructure. It is therefore critical that the substantial financial savings from the removal of fuel subsidies flow to the government to fund priority spending,” the IMF said.
It said achieving Nigeria’s potential required continued reforms and an effective social safety net to carry the most vulnerable along.
The IMF suggestions came barely a week after it raised concerns that Nigeria had experienced increased poverty and food insecurity in the past two years of President Bola Tinubu’s administration.
It highlighted this concern in its 2025 Article IV Mission with Nigeria, released on Wednesday, July 2.
While it hailed the government’s implementation of major reforms, including removing fuel subsidies, stopping monetary financing of the fiscal deficit, and improving the functioning of the foreign exchange market, it said that at the same time the decisions were taken, poverty and food insecurity rose.