Revealed! IMF sends warning to Nigeria as oil prices falls

• The International Monetary Fund (IMF) has advised the Nigerian authorities to reconsider its 2025 N54.99 trillion fund owed to lower-than-expected lipid prices
• While the system is projected to turn by 3.4% successful 2025, the IMF emphasised the request for recalibration of the fund to bespeak marketplace realities and commended reforms by the CBN
• In response, Finance Minister Wale Edun stated that the authorities is taking proactive measures to mitigate risks and support economical stableness portion fostering inclusive growth

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Given the lower-than-expected lipid prices connected the planetary market, the Federal Government (FG) has been encouraged by the International Monetary Fund (IMF) to reconsider the 2025 N54.99 trillion budget.

IMF has advised the Nigerian authorities to reconsider its 2025 N54.99 trillion budget. Photo Credit: Contributor
Source: Getty Images

The Fund's Article IV Consultation Report connected Nigeria, which was published connected Tuesday successful Washington, DC, USA, included the advice.

According to the planetary institution, Nigeria’s economy is expected to turn astatine 3.4%, supported by higher lipid output and a falling ostentation rate. However, the 2025 fund needs to beryllium recalibrated to bespeak little lipid prices and marketplace realities. The IMF commended the Central Bank of Nigeria (CBN) for its speech complaint liberalization and different reforms by the monetary authorities, which person accrued superior travel into the country.

The Fund stated that until disinflation is firmly established, the Central Bank of Nigeria should proceed to support a strict monetary argumentation stance.

The ongoing recapitalisation process is 1 of the initiatives aimed astatine improving the banking system, which the IMF has acknowledged.

Growth with debased per capita

It stated that "growth has been steady, but excessively debased successful per capita terms, and ostentation remains high. These gains person yet to payment each Nigerians. Food insecurity and poorness person risen.

Halfway done its term, the authorities is present focused connected raising growth, portion adapting to the spillovers from the changing planetary environment. Agriculture remained subdued, owing to information challenges and sliding productivity.”

"Real GDP is expected to grow by 3.4% successful 2025, supported by the caller home refinery, higher lipid production, and robust services. Against a analyzable and uncertain outer environment, medium-term maturation is projected to hover astir 3.5%, supported by home betterment gains."On the outer assemblage and the foreign speech market, the Fund stated: "Reforms to the FX marketplace and overseas speech interventions person brought stableness to the naira. Naira stabilization and improvements successful nutrient accumulation helped bring ostentation down to 23.7% year-on-year successful April 2025, compared to the 31 percent yearly mean successful 2024, according to the rebased CPI scale released by the Nigerian Bureau of Statistics."

Edun reacts to IMF report

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reacted to the IMF findings connected Nigeria, pursuing the decision of the Article IV Consultation successful April 2025. He said the authorities would instrumentality a proactive stance against the identified downside risks.

In a statement, Mohammed Manga, the Director of Information and Public Relations, said that the Minister stressed the value of implementing the 2025 fund with an accent connected maintaining economical stableness and protecting betterment achievements.

FG stated the authorities continues to show developments successful the planetary lipid market. Photo Credit: FG
Source: UGC

He stated,

“The authorities continues to show developments successful the planetary lipid marketplace and the planetary commercialized situation and is taking responsive measures to mitigate imaginable risks portion maintaining momentum toward inclusive growth.”

IMF removes Nigeria from apical 10 countries with highest debt

Legit.ng reported that arsenic the 2nd fractional of 2025 progresses, much and much African countries are facing problems owed to their high indebtedness obligations to the International Monetary Fund (IMF).

Even though IMF-supported initiatives are intended to stabilize the system implicit time, they person occasionally resulted successful achy austerity measures that incite fashionable unrest successful nations similar Ghana and Malawi.

These monetary commitments, which were often made to adjacent fund gaps, summation overseas reserves, oregon support economies unchangeable during terrible crises, person present developed into superior dangers.

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Source: Legit.ng