The International Monetary Fund (IMF) has commended President Bola Tinubu for spearheading structural reforms that previous administrations, including those of ex-Presidents Muhammadu Buhari, Goodluck Jonathan, and Olusegun Obasanjo, avoided.
In its latest assessment of the Nigerian economy, the IMF projected a three per cent growth rate for Nigeria in 2024, attributing it to Tinubu’s administration’s swift action in adopting critical policy reforms.
According to the IMF, Tinubu’s administration courageously tackled deep-rooted issues such as fuel subsidy removal and the unification of official exchange rates, which were previously neglected by past administrations.
“The new administration has made a strong start, tackling deep-rooted structural issues in challenging circumstances. Immediately, it adopted two policy reforms that its predecessors had shied away from: fuel subsidy removal and the unification of the official exchange rates,” IMF said.
While acknowledging Nigeria’s economic challenges, including stalled per-capita growth, high poverty rates, and food insecurity, the IMF emphasized the importance of Tinubu’s structural reforms for the country’s medium-term outlook.
“Growth is projected at 2.9 per cent for 2023 and 3 per cent in 2024, as hydrocarbon performance revives, including from better control of theft.
“If the authorities succeed in developing and implementing a comprehensive reform agenda, the medium-term outlook would be much improved,” the international lending agency added.
Despite the accolades from the IMF and other experts, Nigerians continue to face increased hardships, particularly as food prices soar due to rising economic inflation.
Responding to public concerns, Tinubu’s administration has taken steps to alleviate the impact of rising food costs, including releasing grain reserves and providing subsidized fertilizer to farmers.
Tinubu has also pledged to transform Nigeria into a net exporter of food in Africa through aggressive mechanized agriculture.
In addition to addressing economic challenges, the IMF emphasized the importance of revenue mobilization and digitalization efforts to improve public service delivery and ensure fiscal sustainability.
While Nigeria faces external and domestic challenges, the IMF remains optimistic about the country’s economic prospects under Tinubu’s leadership, urging continued focus on structural reforms and prudent fiscal management.
