Emmanuel OchayiThe International Monetary Fund (IMF) has advised the Nigerian government to ensure that its economic stabilisation measures include targeted support for the most vulnerable groups. The organisation stressed that economic reforms should not come at the expense of citizens who are struggling the most.
IMF Urges Social Support Measures
IMF Director of Communications, Julie Kozack, made this statement during a press briefing at the IMF headquarters in Washington, DC. She acknowledged the economic challenges many Nigerians face and called for policies that balance economic stability with social welfare.
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“The authorities’ policies to stabilise the economy and promote growth are welcomed,” Kozack said. “However, they must be accompanied by targeted social transfers to support the most vulnerable populations. We recognise the extremely difficult situation that many Nigerians face.”
She highlighted the importance of ensuring that cash transfers reach those who need them most. According to her, this would help cushion the impact of economic reforms, especially for low-income households.
Nigeria’s Revenue Mobilisation and IMF’s Recommendations
Beyond social support, the IMF also urged the Nigerian government to improve domestic revenue mobilisation. This, according to Kozack, should be a key priority to sustain economic stability and growth. The IMF believes that a well-structured revenue system will allow the government to provide necessary services while managing economic reforms effectively.
Raising domestic revenue has been a challenge for Nigeria, as the country struggles with low tax collection and high dependence on oil revenue. The IMF has repeatedly advised Nigeria to diversify its revenue sources and enhance tax efficiency to reduce reliance on external borrowing.
IMF Team Set to Visit Nigeria
Kozack also announced that an IMF staff team would visit Nigeria next week to prepare for the 2025 Article IV Consultation. This annual review allows the IMF to assess the country’s economic health and recommend policies for sustainable growth.
The review process involves collecting economic and financial data, engaging with Nigerian officials, and evaluating policy decisions. The discussions help shape IMF recommendations on stabilisation measures, revenue strategies, and social support initiatives.
Economic Stability and Social Welfare: Finding a Balance
The IMF’s recommendations highlight the delicate balance between economic stability and social welfare. While Nigeria has implemented reforms aimed at stabilising the economy, the IMF warns that these efforts must not exclude the most vulnerable.
Previous economic policies, including subsidy removals and exchange rate adjustments, have led to inflationary pressures and increased hardship for many Nigerians. Without targeted social welfare programmes, these measures could deepen poverty levels.
The Nigerian government has introduced some social intervention programmes, but the IMF insists that these efforts must be strengthened and effectively implemented to ensure they reach those in need.
What Lies Ahead for Nigeria’s Economy?
The Nigerian government has signalled its commitment to economic reforms, but the challenge remains in ensuring that these policies do not worsen living conditions for ordinary citizens. The upcoming IMF consultation will provide an opportunity for Nigerian policymakers to present their strategies and discuss areas of improvement.
With the IMF stressing the importance of cash transfers and revenue reforms, the focus will be on how the Nigerian government implements these recommendations. The effectiveness of these measures will determine how well the country navigates its current economic challenges while protecting its most vulnerable citizens.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
