The International Monetary Fund (IMF) has advised the Federal Government to come up with targeted social investments to cushion the impacts of its reforms.
President Bola Tinubu’s economic reforms have taken a toll on Nigeria’s poorest citizens as the country battles fiscal stability.
The IMF said the removal of fuel subsidies, while necessary, has exacerbated hardship for many Nigerians, with the poverty rate rising to 47 per cent in 2024.
BusinessDay reports that during her inaugural visit to Nigeria, the IMF’s First Deputy Managing Director, Gita Gopinath, commended the government for implementing long-overdue measures such as the liberalisation of the foreign exchange market and the removal of fuel subsidies.
She, however, warned that the benefits of these reforms could be undermined if social protection programmes are not accelerated.
“The removal of fuel subsidies, while necessary, has exacerbated hardship for many Nigerians, with the poverty rate rising to 47 per cent in 2024,”Gopinath stated.
