The International Monetary Fund (IMF) has called on the Nigerian government to ensure that its ongoing economic reforms prioritize the protection of the country’s most vulnerable citizens. The IMF, while acknowledging the challenges posed by the country’s economic situation, emphasized the importance of supporting the poorest Nigerians through targeted cash transfers and other social support programs.
Julie Kozack, the Director of the IMF’s Communications Department, made the call during a press briefing on Thursday, March 27, 2025. She highlighted the critical role of cash transfer programs in easing the suffering of the most vulnerable members of society, urging the federal government to expedite the completion of its cash transfer initiative. This program aims to provide financial assistance to low-income households, which have been disproportionately affected by Nigeria’s ongoing economic challenges.
“The situation that many Nigerians face is extremely difficult, and it is essential that the government’s efforts to stabilize the economy and boost growth are accompanied by measures that provide support for the most vulnerable households,” Kozack said. She added that completing the rollout of cash transfers to vulnerable Nigerians is a key priority for the country, especially in light of the current economic reforms.
Nigeria, Africa’s largest economy, has been grappling with a series of economic challenges in recent years. These challenges include rising inflation, high unemployment rates, and a widening gap between the rich and the poor. The government’s efforts to stabilize the economy have included measures such as the removal of fuel subsidies and adjustments to the foreign exchange rate, which have resulted in increased fuel and food prices. For many Nigerians, these changes have made daily life even more difficult.
The IMF has been working closely with the Nigerian government to implement these economic reforms, but it has consistently stressed the need to cushion the impact on the poorest and most vulnerable citizens. The organization has highlighted the importance of a comprehensive social safety net that can protect Nigerians from the adverse effects of economic changes.
In her remarks, Kozack stressed that the IMF recognizes the challenging circumstances faced by ordinary Nigerians, particularly those living in poverty. She pointed out that the government’s cash transfer program, which aims to provide financial support to poor households, must be completed without delay to offer immediate relief.
The IMF’s engagement with Nigeria has been ongoing, with regular consultations between the Fund’s officials and Nigerian policymakers. In March 2025, IMF’s First Deputy Managing Director, Gita Gopinath, visited Nigeria and met with key government officials, including Finance Minister Wale Edun and Central Bank Governor Yemi Cardoso.
During her visit, Gopinath discussed Nigeria’s economic reforms and the role of the IMF in supporting the country’s efforts to boost growth and reduce poverty. The IMF delegation also stressed the need for increased revenue mobilization within Nigeria, which has faced challenges in generating sufficient income from taxes and other domestic sources.
The IMF has long called for improved revenue generation to help fund the country’s development programs and reduce dependence on external borrowing. Kozack emphasized that the country must focus on improving revenue collection domestically to strengthen its fiscal position.
Following Gopinath’s visit, Kozack announced that IMF staff would be returning to Nigeria in early April 2025 to prepare for the 2025 Article IV Consultation. The Article IV Consultation is a periodic review by the IMF of a country’s economic and financial policies, and it provides recommendations for strengthening the country’s economic framework.
A central focus of the IMF’s advice to Nigeria has been the expansion of its cash transfer program. Last year, the IMF recommended that the Nigerian government extend its cash transfer initiative to rural areas, where poverty and food insecurity are particularly severe. The World Bank has also voiced support for cash transfers, describing them as a key tool in helping Nigerians break the cycle of intergenerational poverty.
Cash transfer programs are especially crucial during times of high inflation and slow economic growth. With food prices rising and job opportunities shrinking, many Nigerians are finding it increasingly difficult to meet their basic needs. In this context, direct cash transfers to vulnerable households can provide much-needed financial relief and help families manage their daily expenses.
The World Bank has emphasized that cash transfer programs are not only essential for providing immediate relief but also for promoting long-term economic inclusion. By ensuring that the most vulnerable Nigerians receive financial support, the government can help lift them out of poverty and prevent further worsening of economic inequality.
Despite the recognition of the importance of cash transfers, the rollout of the program has faced delays. The government has struggled with logistical challenges in reaching remote areas and ensuring that the funds are distributed equitably. The IMF’s call to expedite the completion of the cash transfer program underscores the urgency of addressing these issues and ensuring that no one is left behind.
The Nigerian government has made strides in addressing the needs of vulnerable populations, but experts agree that more needs to be done to reach the poorest citizens. In addition to cash transfers, experts have called for improved access to education, healthcare, and job training programs, which can provide a more sustainable path out of poverty.
Local communities in Nigeria have also begun to organize efforts to support the most vulnerable, particularly women and children, who are disproportionately affected by poverty. Many non-governmental organizations (NGOs) are working on the ground to provide food, healthcare, and educational support to those in need. However, these efforts are often limited by funding constraints and the scale of the poverty crisis.
As Nigeria continues to navigate its economic challenges, the IMF’s call for protecting the poorest citizens highlights the need for a balanced approach to economic reform. While measures to stabilize the economy and improve growth are necessary, they must be accompanied by a robust social safety net that ensures that the most vulnerable are not left behind.
The Nigerian government must work quickly to complete the cash transfer program, particularly in rural areas, where poverty is most acute. Additionally, efforts to improve revenue mobilization and strengthen the country’s fiscal position should be pursued with the aim of providing more resources for social support programs.
