We’ve started seeing positive results from our reforms - Tinubu Tells IMF Chief

President Bola Tinubu has stated that Nigerians are beginning to witness the positive outcomes of his administration’s economic reforms. 

Speaking during a meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), at the G20 Leaders’ Summit in Rio de Janeiro, Brazil, Tinubu assured that his government remains committed to prioritizing the welfare of the country’s most vulnerable citizens, even as the reforms take effect.

 “We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation,” Tinubu said, according to a statement released on Thursday by his spokesperson, Bayo Onanuga.

Since taking office in May 2023, Tinubu has implemented major policy changes, including the removal of the petroleum subsidy and the floating of the naira. While these reforms aim to stabilize the economy, they have led to rising inflation and widespread hardship for many Nigerians.

Acknowledging the strain on purchasing power, Tinubu pledged to expand social safety nets to mitigate the impact on the poorest citizens.

Tinubu also highlighted the importance of education in addressing poverty and hunger, emphasizing the need for significant investments in infrastructure and resources to ensure access for all. “We have too many children out of school, and we know that education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school,” he told Georgieva.

On tax reforms, the President noted that his administration is engaging stakeholders to expand the tax base while ensuring that tax policies do not overburden already strained Nigerians.

“We are engaging stakeholders and sensitising Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot. We will require your support on this,” Tinubu added.

The Nigerian leader also congratulated the IMF chief on her re-election for a second term and expressed gratitude for the Fund’s support in implementing the reforms. Tinubu called for further institutional backing to enhance economic stability and sustainable growth.

In response, Georgieva praised Tinubu’s reform initiatives and acknowledged their potential for positive transformation. She expressed her desire to visit Nigeria and assured continued IMF support for the country’s diversification efforts.

“The social investment programmes are a great way to cushion the effects on the most vulnerable,” she said, pledging further technical and financial assistance.

Contrary to common perceptions, Georgieva emphasized the IMF’s commitment to supporting vulnerable societies and emerging economies. She also offered technical support for Nigeria’s budgeting process to maximize the benefits of loans and other financial instruments.