At the 2025 IMF/World Bank Spring Meetings in Washington D.C., the International Monetary Fund (IMF) called on Nigeria to strengthen its fiscal discipline, warning that inefficient spending and weak financial institutions could undermine the country’s economic stability.

Davide Furceri, Division Chief in the Fiscal Affairs Department of the IMF, acknowledged Nigeria’s recent efforts at fiscal reform but stressed the need for greater efficiency in spending and stronger revenue mobilization.

“We understand that many countries, including Nigeria, face pressing spending needs. But spending must be done wisely, which means stronger prioritization and greater efficiency in resource allocation,” Furceri said, emphasizing that prudent fiscal management is essential for resilience in a volatile global environment.

He urged Nigerian authorities to implement structural safeguards, such as medium-term fiscal frameworks and robust public financial management systems, to reduce uncertainty and ensure long-term economic sustainability.

Vitor Gaspar, Director of the IMF’s Fiscal Affairs Department, reinforced the message, calling for Nigerian fiscal authorities to build financial buffers and restore public trust through credible policy actions.

“Policy makers must invest their political capital in building confidence and trust, starting with keeping their own houses in order,” Gaspar said.

He outlined three key policy priorities to help countries like Nigeria weather economic headwinds: integrating fiscal policy with broader economic goals, reducing public debt while rebuilding fiscal buffers, and driving long-term growth through structural reforms.

“Fiscal policy must be an anchor for confidence and stability, contributing to a competitive economy, delivering growth and prosperity for all. Ministers of finance must build trust, tax fairly, spend wisely, and take the long-term approach,” he added.

IMF officials also warned that heightened global uncertainty, spurred by escalating tariffs and trade tensions, continues to pressure public finances across emerging economies.

Nigeria, they noted, must prepare by strengthening its revenue base and ensuring public funds are channeled to high-impact areas such as social protection and infrastructure.

The Fund’s latest advice underscores a consistent message: Nigeria must remain disciplined, efficient, and forward-looking in its fiscal strategy to safeguard economic stability and unlock sustainable growth.