# IMF urges Nigeria to target subsidy savings for poor > IMF says Nigeria must direct subsidy reform savings to vulnerable citizens. - Title: IMF urges Nigeria to target subsidy savings for poor - Summary: IMF says Nigeria must direct subsidy reform savings to vulnerable citizens. IMF advises Nigerian government to ensure subsidy savings from reforms reach poor… - Keywords: imf, nigerian government, subsidy reform, social protection, poor citizens, fiscal policy, nigeria, news, politics, urges, target, subsidy - Source: Premium Times Nigeria — https://premiumtimesng.com/news/headlines/917361-make-sure-subsidy-savings-go-to-poor-citizens-imf-tells-nigerian-govt-others.html - Author: Oladeinde Olawoyin - Published: 2026-10-15T15:27:58+00:00 - Read time: 1 min - Topics: imf, nigerian government, subsidy reform, social protection, poor citizens, fiscal policy, nigeria, news, politics ## IMF regional economic outlook The International Monetary Fund urged Nigerian government and other African economies to ensure subsidy savings from reforms reach poor citizens directly. > And our advice in many places has been to phase these subsidies gradually, and make sure that what you save from the subsidy reform is well targeted to those who actually need it ## IMF director speaks Zeine Zeidane, IMF's African Department director, advised governments to protect vulnerable populations during subsidy removal. > it’s not specific to nigeria, if you look at our programme, we have many programmes but we have always indicated target on social spending ## Nigeria's subsidy reforms Nigeria introduced reforms to fix economic structure after abolishing wasteful subsidy regime and tax reforms. > the government introduced reforms in the foreign exchange market, abolished what it termed a wasteful, corruption-ridden subsidy regime amid fiscal pressures ## IMF on subsidy impact IMF states subsidies benefit wealthy populations while straining government finances and fiscal stability. > so if you do a certain amount of subsidies, most of it is going to those who don’t need it ## Targeted support needed IMF recommends phasing subsidies gradually and directing savings to vulnerable citizens for better fiscal outcomes. > it’s better to support people who need support than supporting product that actually can affect both your fiscal position but also for oil importers ## Nigeria's inflation situation Nigeria's inflation eased to 14.63% in September according to IMF analysis. > nigeria’s inflation eases to 14.63% in september ## IMF growth projections IMF forecasts Sub-Saharan Africa will grow 4.5% in 2026 and 2027 despite regional economic challenges. > sub-saharan africa is expected to grow by 4.5 percent in both 2026 and 2027 ## Fiscal challenges in Africa High interest burdens and low reserves threaten many african countries with limited room for economic shocks. > high interest burdens, low reserves in many countries, and falling aid leave limited room for absorbing another adverse shock ## IMF advice for Nigeria IMF advises Nigeria to mobilize domestic revenue outside oil sector for education, health, and infrastructure. > on the growth side, the imf said its advice for the government has always been to, on one side, mobilise more domestic revenue outside the oil sector ## Private sector growth IMF highlights nigeria's potential for private sector growth through young entrepreneurs and tech-savvy population. > nigeria is a country that has a lot of dynamism, a lot of young entrepreneurs, young tech-savvy populations ## Structural reforms needed IMF recommends structural reforms to improve business environment and integration for economic growth. > so all this will certainly help accelerate growth and create jobs ## Regional economic outlook Sub-Saharan Africa faces risks but has made progress in fiscal adjustment and debt management. > pre-war fiscal adjustment and declining debt ratios are important achievements ## Inflation concerns IMF warns of persistent inflation despite recent easing in nigeria's inflation rate. > the report said risks remain decidedly tilted to the downside ## Next steps for nigeria Nigeria must target subsidy savings for vulnerable citizens to avoid economic setbacks. > it’s important to have a targeted system of support to the most vulnerable components of society ## Key takeaway IMF advises Nigerian government to ensure subsidy savings from reforms reach poor citizens directly.