The International Monetary Fund (IMF) has lauded Nigeria for its remarkable progress in boosting tax revenue generation and improving transparency in the management of foreign exchange reserves.
This recognition was announced during a press briefing on the Global Financial Stability Report, which took place amid the ongoing World Bank and IMF Annual Meetings in Washington, D.C.
Presenters at the event included Tobias Adrian, Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department (MCM); Vamvakidis Athanasios, Deputy Director of MCM; and Jason Wu, Assistant Director. The session was moderated by Meera Louis, IMF Communications Officer.
The IMF officials underscored the importance of exchange rate dynamics as a natural buffer for economies facing external shocks. They explained that a depreciating currency should not automatically be viewed negatively; instead, it can help restore competitiveness and balance within the domestic economy.
In a related update, the IMF has revised Nigeria’s economic growth projection upward to 3.9%.
The Fund praised Nigeria’s implementation of critical policy reforms designed to bolster macroeconomic stability, particularly through enhanced monetary policy frameworks. It reaffirmed support for Nigeria’s transition to a more flexible exchange rate regime, calling it a vital step toward reinforcing economic resilience.
IMF representatives highlighted Nigeria’s improved capacity to collect revenue and its strides in increasing transparency around foreign exchange operations and reserve management. These advancements, combined with the Central Bank of Nigeria‘s tighter monetary stance, have contributed to a reduction in inflation from over 30% last year to around 23% this year, while also aiding the accumulation of external reserves. “The outlook appears encouraging,” one official commented, expressing cautious optimism about Nigeria’s economic trajectory.
Despite these gains, the IMF warned that Sub-Saharan Africa still confronts considerable hurdles. Although the region’s growth remains relatively robust amid easing global financial conditions and renewed capital inflows, the volatility caused by large inflows followed by sudden capital flight continues to pose risks. Such abrupt reversals could expose vulnerabilities, especially in economies heavily dependent on foreign investment.
Therefore, the IMF urged countries across the region, including Nigeria, to consolidate recent achievements by maintaining sound fiscal and monetary policies, improving debt management, and accelerating structural reforms that enhance domestic revenue mobilization. The officials also emphasized the necessity of ongoing international support to help African nations navigate emerging challenges and sustain their progress toward stronger, more stable, and inclusive economic development.