The Federal Government of Nigeria and the International Monetary Fund (IMF) are advancing discussions on a comprehensive medium-term growth and fiscal reform framework aimed at supporting macroeconomic stability, strengthening revenue generation, and fostering sustainable development between 2026 and 2030.
The consultations, which form part of ongoing policy coordination between Nigeria and the Fund, are expected to produce a unified roadmap that will guide fiscal discipline, exchange rate management, and structural diversification in Africa’s largest economy.
According to officials familiar with the discussions, the reform plan is designed to build resilience across critical sectors of the economy while ensuring policy consistency amid external and domestic challenges.
The framework will also prioritise transparency, improved public finance management, and strategies to reduce dependency on volatile oil revenues.
Nigeria’s fiscal position has come under pressure in recent years due to elevated expenditure, reduced oil output, and persistent subsidy-related costs.
The reform dialogue with the IMF seeks to create a sustainable fiscal balance through a broadened tax base, efficient subsidy rationalisation, and increased non-oil revenue mobilisation.
The government is also considering new fiscal instruments to improve capital inflows and reduce reliance on short-term debt, aligning with global best practices in debt sustainability.
Enhanced collaboration between the Federal Inland Revenue Service (FIRS), Customs Service, and state revenue agencies is expected to play a key role in implementing these reforms.
Beyond fiscal adjustments, the medium-term framework aims to drive structural transformation through targeted investments in infrastructure, energy, and the digital economy.
The IMF has maintained that inclusive growth in Nigeria will depend on a business environment that encourages private sector participation and innovation.
Key policy discussions also include the need to strengthen the exchange rate framework, improve access to foreign exchange liquidity, and support monetary reforms that promote investor confidence.
Analysts note that currency stability remains crucial for long-term planning, capital market recovery, and external investment flows.
The plan will further integrate initiatives to enhance productivity in agriculture and manufacturing, sectors seen as critical to employment creation and import substitution.
By promoting export competitiveness and value addition, Nigeria seeks to diversify its growth base and reduce vulnerability to commodity price swings.
In alignment with IMF recommendations, the new framework will embed stronger governance standards and transparency measures in public finance operations. This includes improved reporting, data-driven expenditure monitoring, and enhanced oversight on public procurement processes.
Government sources indicate that Nigeria is leveraging technical assistance from the IMF to strengthen institutional capacity, particularly in macroeconomic modelling and fiscal forecasting. These capabilities are intended to improve policy coordination and ensure that reforms deliver measurable outcomes across federal and state levels.
Analysts view the ongoing talks as a critical step toward stabilising Nigeria’s macroeconomic fundamentals and positioning the country for sustained growth over the next five years.
The reform plan is expected to shape the government’s budgetary priorities, medium-term expenditure framework, and borrowing strategy leading into the 2026–2030 development period.
If successfully implemented, the IMF-backed framework could enhance investor confidence, reduce fiscal risks, and improve Nigeria’s credit outlook.
It may also attract additional support from multilateral partners and development finance institutions for infrastructure and social investment programmes.
Nigeria’s collaboration with the IMF underscores the government’s recognition of the need for coordinated policy execution to navigate inflationary pressures, currency challenges, and structural inefficiencies.
The engagement signals a renewed commitment to fiscal prudence and long-term economic transformation.