- …lauds CBN
- Country positioned to resist external shocks –Edun
The International Monetary Fund (IMF) has projected Nigeria’s real GDP growth at 3.4 per cent in 2025. It attributed the growth to new domestic refinery, higher oil production, and a strong services sector.
Against the backdrop of complex and uncertain external environment, medium-term growth is expected to remain around 3.5 per cent, supported by domestic reform gains. The Fund’s Executive Board arrived at the figures at the concluded 2025 Article IV consultation with Nigeria.
The Fund noted that gross and net international reserves rose in 2024, supported by a strong current account surplus and better portfolio inflows, adding that reforms in FX market and foreign exchange interventions had stabilized the improvements in food production reduced inflation to 23.7 per cent year-on-year in April 2025, down from a 31 per cent annual average in 2024, according to the back casted rebased CPI index released by the Nigerian Bureau of Statistics.
The Fund’s team praised the country’s monetary and fiscal authorities for successfully implementing significant reforms over the past two years.
The IMF team also welcomed the related gains in macroeconomic stability and resilience. A statement issued in Washington, DC, on July 2, 2025, noted that the Central Bank of Nigeria was appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched. It recognised measures to strengthen the banking system, including the ongoing recapitalisation process.
They welcomed the CBN’s efforts to enhance financial inclusion and promote capital market growth, while emphasising the need to adopt a robust risk-based supervision for mortgage and consumer lending schemes and the fintech and crypto sectors.
The IMF team also commended the efforts to strengthen the AML/CFT framework and stressed the importance of resolving remaining weaknesses to exit the FATF grey list, as soon as possible.
They applauded discontinuing deficit monetisation and ongoing efforts to strengthen central bank governance to set the institutional foundation for inflation targeting.
According to the statement, the Directors also lauded the steps taken by the authorities to build reserves and bolster market confidence. They praised the bank’s reforms in the foreign exchange market that supported price discovery and liquidity.
They called for the implementation of a robust foreign exchange intervention framework focused on containing excess volatility, emphasising that the exchange rate is an important shock absorber. “The Nigerian authorities have implemented major reforms over the past two years, improving macroeconomic stability and enhancing resilience.
The authorities have removed costly fuel subsidies, stopped monetary financing of the fiscal deficit and improved the functioning of the foreign exchange market. Investor confidence has strengthened, helping Nigeria successfully tap the Eurobond market and leading to a resumption of portfolio inflows.
“Growth accelerated to 3.4 per cent in 2024, driven mainly by increased hydrocarbon output and the vibrant services sector. Agriculture remained subdued, owing to security challenges and sliding productivity,” the statement added.
The IMF further observed that gross and net international reserves rose in 2024, supported by a strong current account surplus and better portfolio inflows, adding that Reforms to the FX market and foreign exchange interventions had stabilised the naira.
The report further noted that Naira stabilisation and improvements in food production reduced inflation to 23.7 per cent year-on-year in April 2025, down from a 31 per cent annual average in 2024, according to the backcasted rebased CPI index released by the Nigerian Bureau of Statistics.
