The International Monetary Fund (IMF) has expressed concern over the lack of a robust social safety net in Nigeria, warning that it threatens to undermine the inclusiveness of ongoing economic reforms.
In an article published on Monday, the IMF noted that while Nigeria has made progress with key reforms since 2023, poverty and food insecurity remain widespread, and millions of Nigerians are yet to feel the impact of policy changes.
The article was jointly authored by Axel Schimmelpfennig, IMF Mission Chief to Nigeria, and Christian Ebeke, IMF Resident Representative in Nigeria.
“Nigeria lacks an effective social safety net to cushion the impact of shocks on the most vulnerable,” the article stated, adding that scaling up the cash transfer programme would be essential to making economic growth more equitable and inclusive.
The IMF praised recent policy shifts under President Bola Tinubu, but stressed that the reforms were inherited in a context of weak growth, declining per capita income, and rising poverty.
The Fund emphasised the importance of complementary social investments to help poor and low-income households cope with inflation, subsidy removals, and other adjustment measures being implemented by the government.
It concluded that a stronger and well-targeted safety net is critical to maintaining public support for reforms and ensuring that economic gains reach all Nigerians.
