The International Monetary Fund (IMF) has recommended that Nigeria continue a tight monetary policy to bring down inflation and stabilise the economy.
Following consultations in Lagos and Abuja, IMF mission chief Axel Schimmelpfennig acknowledged recent reforms in Nigeria.
“The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth.
“Some of the reforms are – ending fuel subsidies and halting central bank financing of deficits.
“Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.
He emphasized the need for fiscal discipline, urging the government to channel savings from subsidy removal into critical investments and social support.
“A firm monetary stance is essential to anchor inflation expectations and navigate ongoing economic uncertainty, ” he said.
He said the Monetary Policy Committee’s data-dependent approach had served Nigeria well and would help navigate elevated macroeconomic uncertainty.
“Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”
