IMF urges Nigeria to deepen tax, monetary, governance reforms for stable growth
IMF urges Nigeria and other major African economies to deepen reforms in fiscal policy, monetary and financial sectors, and governance to boost macroeconomic stability and support inclusive growth. The Fund says fiscal reforms are a high priority in all but one of the eight largest AU economies reviewed, with Nigeria needing improvements in tax policy, revenue administration, public financial management and spending efficiency. It also flags strengthening monetary policy frameworks as a priority for Nigeria, Egypt and Ethiopia, and calls for greater fiscal transparency, stronger public financial management and improved anti-corruption practices in Nigeria's governance agenda. The advice comes as Nigeria's tax reform programme—launched in January 2026 through the Nigeria Tax Act, Tax Administration Act, Revenue Service Act and Joint Revenue Board Act—seeks to eliminate duplicate taxes, harmonise administration and expand the revenue base. Yet a Central Bank of Nigeria survey showed 70.8% of businesses still cite high and multiple taxation as their top constraint, ahead of insecurity and interest rates. After an aggressive tightening cycle that lifted the Monetary Policy Rate from 18.75% in 2023 to 27.5% by end-2024 and raised the Cash Reserve Ratio to 50%, the CBN is now in a gradual easing phase as inflation eases. Presidential aide Tope Fasua has warned that prolonged high rates could choke growth without delivering the desired inflation drop. The IMF also cautioned Nigeria over a proposed $5 billion derivative-based financing deal with First Abu Dhabi Bank, warning such structures carry hard-to-assess risks, while noting the UAE-funded $1.2 billion tranche for the Lagos-Calabar Coastal Highway secured in December 2025. What steps will you take to align your finances or business with these reform signals?