The International Monetary Fund (IMF) has urged Nigerian President Bola Tinubu to exercise caution in government spending following the implementation of difficult economic reforms designed to save more revenue. At the 2025 IMF/World Bank Spring Meetings in Washington, D.C., Vitor Gaspar, the IMF’s Director of Fiscal Affairs, emphasized the importance of strong fiscal institutions, not only for Nigeria but for many countries globally.
According to the News Agency of Nigeria, Gaspar highlighted the urgency for governments to act decisively in the face of harsh trade-offs and painful choices. He stressed that building trust and confidence should start with maintaining fiscal discipline. “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 team,” Gaspar said.
The IMF also recommended that fiscal authorities focus on reducing public debt and creating buffers to manage future economic shocks. A credible medium-term fiscal framework would allow governments to respond to spending pressures while ensuring economic stability.
Davide Furceri, the IMF’s Nigerian division chief, acknowledged that Nigeria had implemented difficult but necessary reforms to create fiscal space. However, he emphasized that it is crucial to spend wisely and prioritize investments in key areas such as social protection and infrastructure.
Furceri further stressed the importance of strengthening fiscal institutions and improving public financial management. “One key message not just for Nigeria, but for many countries, is the importance of strong fiscal institutions,” he said, emphasizing that such measures help reduce uncertainty and ensure fiscal policy contributes to long-term stability.
Article updated 2 weeks ago. Content is written and modified by multiple authors.
