The International Monetary Fund (IMF) has released its latest outlook report for sub-Saharan Africa, revealing that the economic reforms initiated by Nigeria's federal government are struggling to yield positive results, 18 months into their implementation.
Stakeholders in the food sector have expressed concerns that these reforms have not significantly improved the cost of living for Nigerians.
In the report unveiled yesterday, the IMF recognized a few countries that have made modest progress with their reforms; however, Nigeria was notably absent from this list and was instead categorized among those failing to achieve desired outcomes.
The IMF projected that the average economic growth rate for the region would remain at 3.6% for 2024, while Nigeria's growth is expected to lag behind at 3.19%.
During a presentation at the Lagos Business School, IMF Deputy Director Catherine Patillo noted that while macroeconomic imbalances in some countries are beginning to decrease, Nigeria has not shared in this positive trend.
"More than two-thirds of countries have undertaken fiscal consolidation," she stated, highlighting improvements in nations such as Cote d'Ivoire, Ghana, and Zambia.
Despite some regional improvements, Nigeria's inflation rate has surged back up after a brief decline earlier this year.
Currently at 33.8%, it remains far above the government's target of 21% for 2024. The IMF report highlighted Nigeria as one of several countries struggling with high inflation, which is still in double digits in nearly one-third of nations surveyed.
Patillo also pointed out that while exchange rates are stabilizing across much of the region, Nigeria continues to experience significant instability and depreciation of its local currency.
The report further emphasized the burden of debt on fiscal stability, mentioning that Nigeria is among those facing severe challenges due to rising debt service costs.
