The Nigerian Presidency has sharply criticized the International Monetary Fund (IMF) over what it described as an overly harsh and unbalanced assessment of the country’s economic reforms, inflation levels, and poverty situation.
This follows an IMF report titled “How Nigeria Can Unleash Its Economic Potential,” which raised concerns about Nigeria’s persistently high inflation, slow reform impact, weak infrastructure, and a lack of robust social safety nets. The report noted that, despite some positive steps, the country’s poverty rate remained at 42% as of 2023, with inflation still exceeding 20%.
The IMF acknowledged recent bold reforms by President Bola Tinubu’s administration, including the removal of fuel subsidies, liberalization of the foreign exchange market, and efforts to strengthen revenue collection. However, it urged further fiscal discipline, more effective use of subsidy savings, and a stronger social protection system.
In a robust response during Channels Television’s “The Morning Brief” on Monday, the Special Adviser to the President on Economic Affairs, Tope Fasua, faulted the IMF’s tone and frequency of criticism, accusing the Bretton Woods institution of undermining Nigeria’s recovery efforts.
“This administration under President Tinubu has implemented some of the deepest economic reforms seen in recent years,” Fasua said. “We only just signed tax bills into law to ease the burden on low-income earners and small businesses. These reforms need time to take root, yet we’re being subjected to fatalistic commentaries.”
He described the IMF’s frequent statements as “heckling,” warning that such remarks could destabilize public perception and pitch citizens against the government.
“Almost every two to three days, there’s a statement on Nigeria. It creates confusion. We just repaid a $3 billion COVID-19 loan—something many nations haven’t done. Yet we’re still being pressured,” Fasua said.
He also criticized what he called contradictions between the IMF’s advisory and lending arms. “They praise our reforms and in the same breath ask for more, as if progress should be instant. This house was dilapidated. We’ve removed the roof and are rebuilding the foundation. You don’t expect comfort overnight,” he added.
Addressing inflation and interest rate concerns, Fasua said recent figures show inflation has started to decline and that the Central Bank of Nigeria is working towards gradual interest rate reductions. He dismissed the notion that inflation could drop to single digits within months as “fantasy.”
He also called for Nigeria to invest in its own economic data and analysis capabilities. “Let’s stop relying solely on Bretton Woods institutions. We need to build our own capacity and credibility,” he said.
Reiterating the administration’s commitment to long-term growth, Fasua concluded: “We’ve done the right things. Let us implement them and measure the impact before we are judged. As President Tinubu would say, ‘Let the poor breathe.’”
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