The International Monetary Fund (IMF) has urged Nigeria to adopt prudent spending measures following the increased revenue generated from recent economic reforms.
Speaking at a Fiscal Monitor news conference during the ongoing 2025 IMF/World Bank Spring Meetings in Washington DC, the Director of the IMF’s Fiscal Affairs Department, Vitor Gaspar, stressed the importance of fiscal discipline amid current global economic challenges.
Gaspar noted that while Nigeria’s reforms have boosted revenue, there is a pressing need for the government to build fiscal buffers to withstand future shocks.
“There is an urgent need for fiscal authorities and governments to build buffers,” he said, adding that countries must act swiftly and decisively in the face of difficult trade-offs and economic pressures.
He also advised policymakers to invest their political capital in building public trust, which he said begins with sound and transparent management of national finances.
According to the IMF director:
“This is especially important in a situation that tests the resilience of individual economies, not to mention the entire system.
“Putting the house in order involves three policy priorities. First, fiscal policy should be part of overall policies.
“Secondly, fiscal policy should, in most countries, aim at reducing public debt and rebuilding buffers to create space to respond to spending pressures and other economic shocks through a credible medium-term framework.
“Thirdly, fiscal policy should, together with other structural policies, aim at improving potential growth, thereby easing policy trade-offs in these times of high uncertainty.
“Fiscal policy must be an anchor for confidence and stability that contributes to a competitive economy, delivering growth and prosperity for all Ministers of finance must build trust, tax fairly, spend wisely and take the long term,” the IMF director said.
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cc: Daily Post Ng
