IMF Urges Nigeria to Revise Budget Amid Low Oil Priceitts.
In early July, the International Monetary Fund advised Nigeria to recalibrate the 2025 budget due to sustained lower oil prices, recommending enhanced cash transfer programs for vulnerable populations . The IMF noted that while Nigeria's forecasted oil price of $75 per barrel has been unrealistic amid global market shifts, the economy remains exposed to such assumptions .
Projected economic growth of 3.4% for 2025 and 3.2% for 2026 is steady, although real gains per capita remain modest, with inflation still in double digits . The IMF emphasized Nigeria's need for fiscal buffers, flexible responses to external shocks, and accelerated efforts to boost domestic revenue and reduction of fuel subsidies .
They also recommended strengthening administrative capacity for cash transfer schemes, given many Nigerians remain unbanked . The IMF's analysis sends a clear message: reforms must be smarter and more equitable to mitigate persistent socio-economic vulnerabilities.
I'm Adedayo Obadina
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