IMF urges FG to spend smartly

..says improved fiscal reforms key to increased economic gains

The International Monetary Fund (IMF) has urged the Federal Government of Nigeria to spend smartly as it reaps the gains of her bold reforms.

The Division Chief of the IMF’s Fiscal Affairs Department, Davide Furceri, made the commendation during a news conference on the Fiscal Monitor held on Wednesday in Washington, on the sidelines of the IMF/World Bank Annual Meetings.

Furceri noted that Nigeria’s fiscal stance remains neutral and consistent with broader macroeconomic goals, particularly efforts to balance revenue mobilisation with efficient public spending.

“Currently, what we are projecting for Nigeria is a neutral fiscal stance, which we believe is consistent with monetary policies aimed at reducing inflation,” he said.

He acknowledged the progress made by Nigeria in implementing key fiscal reforms, including laws to streamline the tax code, reduce tax expenditures, and simplify compliance for businesses. “These are steps in the right direction,” Furceri said.

However, he urged the Nigerian government to strengthen its fiscal framework by improving efficiency in public spending and optimising how resources are allocated.

According to him, better spending efficiency could deliver substantial economic and social gains while ensuring improved service delivery to citizens.

“In addition, it is important to increase social spending, particularly to support vulnerable households and ensure inclusive growth,” he added.

Furceri also encouraged Nigeria to maintain fiscal discipline, enhance revenue generation, and deepen transparency in public finance management under its medium-term economic framework.

He said the IMF’s endorsement reflects growing confidence in Nigeria’s reform trajectory, even as the government intensifies efforts to boost growth, reduce inequality, and sustain macroeconomic stability.

The IMF’s Fiscal Monitor highlights how countries can strengthen economic growth by enhancing the efficiency and composition of public spending, with a particular focus on balancing fiscal sustainability and social welfare