By Sandra Ugwu

The International Monetary Fund (IMF) has acknowledged that the economic reforms introduced by the Federal Government have strengthened Nigeria's macroeconomic outlook, but warned that poverty and food insecurity continue to worsen across the country.

In its latest assessment of Nigeria's economy released on Tuesday following its annual review, the IMF said key reforms implemented over the past three years have improved economic stability and enhanced resilience.

Since assuming office in 2023, President Bola Tinubu's administration has embarked on a series of economic reforms, including the removal of the long-standing fuel subsidy, liberalisation of the foreign exchange market, and reforms to the tax system.

According to the IMF, these measures have contributed to improved macroeconomic performance and laid the foundation for sustainable growth.

“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF stated.

Despite these gains, the Fund noted that living conditions remain challenging for many Nigerians. It revealed that more than 60 per cent of the country's population was living in poverty by the end of 2025, while over 27 million people experienced food insecurity during the year.

The IMF's findings align with previous reports from the World Bank, which estimated that about 61 per cent of Nigerians were living below the poverty line, compared to 40 per cent in 2019. The World Bank had noted that much of the increase in poverty occurred before the current administration took office.

The Fund also identified insecurity, particularly in northern Nigeria, as a major threat to economic activity and food production. It warned that persistent attacks by armed groups in agricultural communities could further undermine growth and worsen living conditions.

Nigeria's inflation rate rose to 15.7 per cent in April, marking a five-month high. Economic analysts attributed the increase partly to rising fuel prices linked to the ongoing conflict in the Middle East.

While projecting economic growth of 4.1 per cent in 2026, up from four per cent in 2025, the IMF cautioned that higher global prices for food, fertiliser and fuel could increase government revenues from oil exports but may also intensify inflationary pressures on households.

The organisation warned that rising costs could further deepen poverty and food insecurity, particularly among vulnerable populations.

The report comes as Nigeria prepares for the next general election, with President Tinubu expected to seek a second term in office.