The International Monetary Fund (IMF) has commended Nigeria’s recent economic reforms, describing them as steps in the right direction, while urging the government to sustain efforts aimed at reducing poverty and curbing inflation.

The global financial institution made the remarks in its latest assessment of Nigeria’s economic outlook, noting that policy adjustments such as subsidy reforms, exchange rate unification, and fiscal restructuring have helped improve macroeconomic stability.

However, the IMF warned that despite these gains, millions of Nigerians continue to face rising living costs, food insecurity, and unemployment. It stressed that inflation remains elevated and continues to put pressure on household incomes across the country.

The Fund advised Nigerian authorities to deepen structural reforms, strengthen social protection systems, and implement targeted interventions that directly support vulnerable households. It also recommended measures to boost productivity, attract investment, and improve revenue generation.

According to the IMF, sustaining reform momentum will be critical to ensuring long-term economic stability and inclusive growth. It emphasized that policy consistency and transparency will play a key role in restoring investor confidence and supporting recovery.

The Nigerian government has in recent months defended its economic policies, arguing that the reforms are necessary to reposition the economy for sustainable growth despite short-term challenges.

As discussions continue, analysts say the focus will remain on how quickly the benefits of these reforms translate into improved living standards for ordinary Nigerians.