Nigerian authorities have made significant strides in stabilizing the economy by ceasing central bank financing of the fiscal deficit and removing costly fuel subsidies.

In response to falling international oil prices, the Nigerian government plans to implement the 2025 budget, aiming for a neutral fiscal stance to support monetary policy and lower inflation.

The fiscal savings from the removal of fuel subsidies are crucial for protecting key spending priorities, enhancing growth investments, and supporting cash transfers for food insecurity relief.

To enhance economic resilience, it is essential to fortify macroeconomic policies, reduce inflation, and establish conditions conducive to private sector growth.

A tight monetary policy is vital for reducing inflation, with the Monetary Policy Committee employing a data-driven approach to effectively address macroeconomic uncertainty.

However, the economic outlook remains uncertain, influenced by elevated global risk sentiment and declining oil prices, which pose ongoing challenges for Nigeria's economy.

Despite these improvements, high levels of poverty and food insecurity persist, indicating that economic gains have not yet reached all Nigerians.

Recently, the IMF team, led by Axel Schimmelpfennig, completed the 2025 Article IV mission to Nigeria, engaging with government officials and stakeholders to discuss the country's economic reforms.