IMF ADVISES FG, STATES TO PRIORITISE SPENDING EFFICIENCY TO PROTECT HOUSEHOLDS
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By: Fasasi Hammad
The International Monetary Fund (IMF) has called on the Federal Government and state governments to focus on the quality of public spending to ensure Nigeria’s recent macroeconomic stability translates into tangible improvements for households.
Speaking at the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook in Lagos, Nigeria’s IMF Country Representative, Dr. Christian Ebeke, warned that the country’s exit from crisis mode should not be mistaken for a permanent recovery. He stressed that while progress has been made over the past two years, complacency could quickly undermine gains achieved through fiscal and monetary reforms.
“Nigeria faces risks if policymakers assume the job is done. Stabilisation is not the destination,” Ebeke said. “Policy discipline is critical, especially as fiscal space remains limited, inflation remains high, and monetary tools are constrained. Poorly executed fiscal decisions could reverse the progress made.”
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Dr. Ebeke highlighted that macroeconomic gains remain fragile, particularly in an election year, when self-inflicted policy errors and procyclical spending could trigger renewed volatility. He urged governments to prioritise spending in critical sectors such as healthcare, education, and social protection, while ensuring transparency and accountability.
The IMF’s warning aligns with concerns from other experts, including the World Bank’s Dr. Samar Mata, who noted that while macroeconomic indicators have improved, millions of Nigerians have yet to see real gains in living standards. She stressed that without targeted fiscal interventions and social protection measures, stability alone will not reduce poverty.
Dr. Ebeke concluded that Nigeria possesses the tools to respond to domestic and external shocks, but success depends on execution. “The focus must now be on the quality of spending. Otherwise, we risk reversing two years of hard-won progress,” he said.
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