The International Monetary Fund (IMF) and the International Finance Corporation (IFC) have commended President Bola Tinubu’s administration for implementing structural reforms aimed at positioning Nigeria as a stronger investment destination. Both institutions urged the government to maintain consistency in its policies, noting that early results are already visible in macroeconomic stability, slowing inflation, a steadier foreign exchange market, and rising reserves.
The commendations were made on Tuesday in Lagos by IMF Resident Representative, Dr. Christian Ebeke, and IFC Principal Country Officer for Nigeria, Mr. Christian Mulamula, at the International Business Conference and EXPO 2025: Invest Nigeria organised by the Lagos Chamber of Commerce and Industry (LCCI).
President Tinubu, represented at the event by the Minister of State for Industry, Trade and Investment, Senator John Owan Enoh, disclosed that the government is in talks with global automobile manufacturers to create an enabling environment for the establishment of assembly plants in Nigeria. He commended the LCCI for fostering dialogue, stressing that Nigeria’s business climate has long been defined by great potential constrained by difficult realities.
He said, “My administration was elected with clear mandate to change that story; to rewrite the narrative from that of obstacles to one of opportunities. And I am here today to assure you with the full weight of my office to assure you that this is not just a promise but a reality we are building every single day.”
Reforms That Drew Praise
Both IMF and IFC highlighted the unification of exchange rates, removal of petrol subsidy, and the passage of landmark tax reforms as measures that deserve particular recognition. According to them, these steps are beginning to reduce volatility in the FX market, ease inflationary pressure, and attract renewed capital inflows.
Ebeke remarked, “The first thing that is important is that inflation is finally decelerating. It does not mean that prices are falling but that the pace at which prices are increasing is going down. The second thing I wish to mention is that the exchange market is now more stable. What we are looking for is not a stable Naira per se but a stable exchange market because a stable Naira will be a product of stable exchange market. We can see that the reserves are going up and businesses are no longer struggling to find Dollar even though they complain that it is a little bit pricy. But that it is available is a right step in the right direction.”
He added that Nigeria’s reserves were now sufficient to cover short-term external liabilities and imports, building confidence for businesses and giving the Central Bank of Nigeria greater room to intervene in the market when necessary.
Ebeke also applauded the administration’s new tax reforms, describing them as “landmark” achievements.
Remaining Concerns
Despite the progress, the IMF representative warned that Nigeria continues to attract more portfolio investments than foreign direct investment (FDI), with little capital flowing into manufacturing and other productive sectors. He further highlighted weak bank credit to the private sector, a challenge that limits productivity and growth.
Ebeke said, “Nigeria receives very little FDIs and it is actually worrisome when you compare Nigeria with countries at the same level of its GDP… When compared to many countries, Nigeria’s credit to GDP ratio is very low. And even when banks extend credit, the bulk of it goes to the oil and gas while manufacturing and agriculture actually receive very, very little credit. So, there is a misallocation of domestic savings in Nigeria as there are concentrations on few sectors but the sectors that are supposed to drive productivity and good wages are not receiving much.”
He cautioned that poverty levels were rising, eroding citizens’ purchasing power, and urged the government to address insecurity, electricity supply, and food inflation. According to him, “No other emerging market country has to deal with the type of insecurity problem Nigeria is facing. Nigeria needs to fix its security problem for its private sector to thrive. The second is power. The objective of Tinubu’s administration is 7.0 per cent GDP’s growth, which will need more reliable electricity. There should be a marshal plan to fix the power sector given the multiplier effect it has on other sectors.”
IFC’s Perspective
Echoing similar sentiments, Mulamula said Nigeria’s structural reforms had created new opportunities across key sectors, including ICT, pharmaceuticals, renewable energy, and agriculture.
He explained, “The good news is that Nigeria has taken bold steps to implement the structural reforms required to make it a more attractive investment destination by unifying the FX markets, tightening monetary policy to manage inflation and removing costly petrol subsidy.”
Mulamula projected that expanding Nigeria’s fibre-optic network could unlock over 200,000 jobs, while agricultural processing and food security initiatives could create more than 300,000 jobs. The renewable energy sector, he added, holds the potential for 250,000 jobs, while pharmaceutical production linked to new policies on local drug manufacturing could generate an additional 30,000 jobs.
Unlocking Nigeria’s Potential
President of LCCI, Mr. Gabriel Idahosa, noted that the goal of EXPO 2025 “is to unlock and deepen Nigeria’s boundless investment opportunities from energy to technology, manufacturing to agriculture, infrastructure to creative economy.”
