Why Tinubu’s govt. is slamming IMF over Nigeria’s inflation, poverty report

The Presidency has strongly pushed back against the International Monetary Fund (IMF) over what it calls a “discouraging and fatalistic” economic assessment of Nigeria, warning that the Bretton Woods institution is destabilising the country with constant pressure.

In a statement made during an appearance on Channels Television’s The Morning Brief on Tuesday, the Special Adviser to the President on Economic Affairs, Tope Fasua, said the IMF’s recent commentary on Nigeria’s reforms was not only unhelpful but also misleading.

Fasua accused the IMF of undermining President Bola Tinubu’s government despite acknowledging the painful but necessary reforms such as fuel subsidy removal and exchange rate unification.

“They said our reforms are good, yet they keep piling on pressure,” he said. “We’ve just signed tax relief bills for low-income earners and small businesses, but before they settle, the IMF is already issuing pessimistic statements that leave Nigerians confused.”

In its July 7 article titled “How Nigeria Can Unleash Its Economic Potential”, the IMF claimed the impact of Tinubu’s reforms had been too slow in addressing inflation, poverty, and investor confidence. It said inflation remained stuck above 20% and warned of deepening food insecurity.

The Fund also recommended more aggressive monetary tightening and improved budget discipline, urging Nigeria to redistribute subsidy savings into infrastructure and safety nets.

But Fasua said the IMF was being unrealistic with its demands and behaving like an overlord rather than a development partner.

“We’ve repaid $3 billion of our COVID-19 loan — something many countries have yet to do,” he noted. “Yet, they behave like landlords banging on our door every few days.”

He added that it was wrong to expect Nigeria’s economy to fully stabilise barely a year after “ripping off the roof” and “rebuilding the foundation.”

“This is a country that was left in ruins. The president is working. You cannot expect him to offer full comfort to over 200 million Nigerians in two years,” Fasua said.

The presidential aide also took aim at the IMF’s call for higher interest rates, saying the Central Bank was already working to bring them down gradually.

“They want us to keep raising interest rates — but to what end? Inflation has reduced over the last three months and will continue to drop. Whoever wrote that report does not sound like an economist, because economists don’t operate on fantasy,” Fasua fired back.

He concluded by urging Nigerians to be patient, stressing that “the government has done the right things and deserves time to deliver results.”

Like President Tinubu famously said, Fasua added, “Let the poor breathe.”