IMF applauds Nigeria’s economic reforms, says they’ll unlock investments, growth

The International Monetary Fund (IMF) has applauded the economic reforms implemented by President Bola Tinubu’s administration.

Abebe Selassie, director of the African department at the IMF, spoke during a press briefing in Washington DC., United States.

Selassie said the IMF has consistently advocated for Nigeria’s investment in areas like infrastructure, health, and education.

He said the government has taken steps which represent a more effective use of public resources, aimed at unlocking the economy’s vast potential to become more dynamic, attract investments, and drive growth.

“We express our thoughts on what would be a better use of public resources and I think over the years, what Nigeria has been testing for is a lot of investment in infrastructure. A lot of investment that’s required in health, education and the like,” Selassie said.

“Those have been our strong views expressed in Nigeria as continued sustaining subsidies for fuel and other areas.

“At the end of the day, these are really deeply domestic and deeply political choices that governments have to make.

“They have made choices that we think move in the direction of better use of public resources, in a way that will unlock this incredible potential that the economy has to make it more dynamic, to invest, to facilitate growth and we welcome those reforms.”

The IMF director acknowledged that the reforms have come with significant costs, including internal adjustment expenses, noting that improving social protections, especially for the most vulnerable, would be beneficial.

Tinubu, during his inauguration on May 29 2023, declared that the petrol subsidy is gone — a development that immediately led to a hike in the cost of the commodity across the country and spiralling inflation across the board.

The next month, the Central Bank of Nigeria (CBN) announced the unification of all segments of foreign exchange (FX) markets.

In the face of the economic hardship caused by the policies, Tinubu has repeatedly called for patience from Nigerians, noting that the reforms introduced by his administration are beginning to show positive signs.