Review 2025 Budget, IMF tells FG,
•Commends CBN FX reforms
•Finance Minister reacts
By Emma Ujah, Abuja Bureau Chief
The International Monetary Fund (IMF) has advised the Federal Government FG) to review 2025 N54.99 trillion budget in view of the lower-than-expected oil prices in the international market.
The advice was contained in the Fund’s Article IV Consultation Report on Nigeria, released in Washington DC, USA, yesterday.
According to the global institution, Nigeria’s economy would grow at 3.4 per cent on the back of higher oil output and falling inflation rate, but the “2025 budget needs to be recalibrated to lower oil prices,” to reflect market realities.
It praised the CBN for the exchange rate liberalisation and other reforms by the monetary authorities which have increased capital flow into the country.
It noted that the Central Bank of Nigeria was appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched.
The IMF recognised measures to strengthen the banking system, including the ongoing recapitalisation process.
Growth with low per capita
It stated: “Growth has been steady but too low in per-capita terms, and inflation remains high.
Gains have yet to benefit all Nigerians. Food insecurity and poverty have risen. Half-way through its term, the government is now focused on raising growth, while adapting to the spillovers from the changing global environment. Agriculture remained subdued, owing to security challenges and sliding productivity.”
GDP growth at 3. 4%
“Real GDP is expected to expand by 3.4 percent in 2025, supported by the new domestic refinery, higher oil production and robust services. Against a complex and uncertain external environment, medium-term growth is projected to hover around 3½ percent, supported by domestic reform gains.”
On the external sector and the foreign exchange market the Fund stated: “Reforms to the FX market and foreign exchange interventions have brought stability to the naira. Naira stabilization and improvements in food production brought inflation to 23.7 percent year-on-year in April 2025 from 31 percent annual average in 2024 in the rebased CPI index released by the Nigerian Bureau of Statistics.
Downside risks
The Fund also said, “Downside risks have increased with heightened global uncertainty. A further decline in oil prices or increase in financing costs would adversely affect growth, fiscal and external positions, undermine financial stability and exacerbate exchange rate pressures. A deterioration of security could impact growth and food insecurity.”
Meanwhile, while agreeing with the Staff Report, the Executive Board of IMF noted that the gains of the reforms were yet to benefit all Nigerians, and with heightened economic uncertainty and significant downside risks, emphasized the importance of agile policy-making to safeguard and enhance macroeconomic stability, creating enabling conditions to boost growth, and reducing poverty.
Commends CBN
The Board stated: “Directors agreed that the Central Bank of Nigeria is appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched. They welcomed the discontinuation of deficit monetization and ongoing efforts to strengthen central bank governance to set the institutional foundation for inflation targeting.
“To lift Nigeria’s growth outlook, improve food security, and reduce fragility, Directors highlighted the importance of tackling security, red tape, agricultural productivity, infrastructure gaps, including boosting electricity supply, as well as improved health and education spending, and making the economy more resilient to climate events.”
Edun reacts to IMF Report
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has reacted to the IMF findings on Nigeria, following the conclusion of the Article IV Consultation in April 2025, saying the government would take proactive stance against the identified downside risks.
According to a statement by the Director of Information and Public Relations, Mr. Mohammed Manga, the Minister emphasized that the implementation of the 2025 Budget is being carried out with a focus on safeguarding reform gains and ensuring economic stability.
He stated: “The government continues to monitor developments in the international oil market and global trade environment and is taking responsive measures to mitigate potential risks while maintaining momentum toward inclusive growth.”
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The International Monetary Fund (IMF) has advised the Federal Government FG) to review 2025 N54.99 trillion budget in view of the lower-than-expected oil prices in the international market.
The post Review 2025 Budget, IMF tells FG appeared first on Vanguard News.
, , Idowu Bankole, {authorlink},, , Vanguard News, July 3, 2025, 12:57 am
