The Nigerian Presidency has pushed back against a recent report by the International Monetary Fund (IMF), describing its assessment of the country’s economic reforms as “very fatalistic” and lacking balance.
In its article released Monday, titled “How Nigeria Can Unleash Its Economic Potential,” the IMF acknowledged President Bola Tinubu’s reform efforts but raised concerns about persistent inflation, widespread poverty, and infrastructural gaps. The Special Adviser to the President on Economic Affairs, Tope Fasua, criticised the tone and frequency of the Fund’s statements, calling them “destabilising.”
“This administration under President Tinubu has done some of the deepest reforms that we have seen in a while. We only just got the tax bills signed into law—bills that offer relief to low-income earners and double the tax threshold for small businesses,” Fasua said.
“We haven’t even allowed those measures to settle, yet we’re hearing all sorts of very fatalistic statements from different places, including, unfortunately, the IMF,” he added during a media appearance on Tuesday.
Fasua said the IMF’s commentary amounted to “heckling,” noting that the country has fulfilled its repayment obligations, including a $3 billion loan from the COVID-19 period.
“We’re not asking for a pat on the back; we’re just saying, you know what, give us a breather. Let us be able to implement the policies we’ve started. They acknowledge that the reforms are good, yet they keep demanding more, and it’s almost like being caught between the devil and the deep blue sea,” he said.
He warned that such statements risk undermining public confidence in government efforts, noting, “It’s like a house that is completely dilapidated. And we’re being asked to provide full comfort in two years after removing the roof and working on the foundation. That’s not realistic.”
‘Let Reforms Settle’
Highlighting what he described as policy contradictions from the IMF, Fasua said the advisory and lending roles of the Fund often conflict.
“The IMF has both an advisory and a lending arm, and sometimes it looks like their advice clashes with their lending stance. We don’t even know which to believe anymore,” he noted.
“They’ve recommended even more painful reforms. They want us to keep raising interest rates. But interest rates are now stabilising. The Central Bank has a view to begin to reduce them gradually.”
Responding to IMF concerns about inflation still hovering above 20 percent, Fasua defended the government’s trajectory. “They complained inflation is high. Do they expect it to drop to single digits in a quarter? That’s unrealistic. Inflation has reduced over the last three months and will likely fall further.”
He also urged Nigeria to build independent data systems. “Sometimes these statements feel overrated. We should invest in collecting our own data and stop depending solely on Bretton Woods institutions. Let’s build our own capacity and data credibility,” he said.
IMF’s Position
The IMF, while acknowledging Tinubu’s reforms, stressed the need for more structural change, including improved budgeting frameworks and reallocating savings from fuel subsidy removal to essential services. It also called for reforms in tax policy, domestic revenue mobilisation, and investment in key sectors like agriculture, electricity, and infrastructure.
“The country needs stronger and more sustained growth to lift millions out of poverty and food insecurity,” the IMF noted, urging continued reform and macroeconomic discipline.
Fasua, however, concluded that reforms are already in motion and require time to yield visible results. “Like the president would say, ‘Let the poor breathe,’” he said.
