The International Monetary Fund has urged the Nigerian government to expand its tax revenue base and tackle tax evasion as part of necessary fiscal reforms to boost the country’s economic resilience.
In a statement at the 2025 IMF Spring Meeting in Washington, D.C., IMF Managing Director Kristalina Georgieva stressed the importance for Nigeria and other African nations to enhance domestic revenue generation, implement technology-driven tax solutions, and address inefficiencies in public finance systems.
Georgieva stated that the ongoing decline in global oil prices has placed considerable strain on the budgets of oil-exporting countries like Nigeria, emphasizing the critical need to reduce reliance on oil revenue.
“Countries like Nigeria must broaden their tax revenue base. It is essential not just for short-term budget support, but for building long-term economic resilience,” she said.
The IMF chief urged African governments to harness digital tools to curb tax evasion and enhance tax compliance. “Technology offers tremendous opportunities to strengthen revenue collection. When deployed effectively, it can reduce leakages, increase efficiency, and promote fairness,” she stated.
On monetary policy, Georgieva encouraged African central banks to develop home-grown strategies instead of copying policies from other regions without accounting for local circumstances.
“We are no more in a place where you can look at the book of the Central Bank of the neighboring country and say, ‘Oh, they are doing this, I will do the same.’ You have to really assess domestic resource mobilisation, your inflationary pressures, and do the right thing for your country,” she cautioned.
Georgieva also advised Nigeria and other African nations to prioritize transparency, combat corruption, and uphold strong economic governance. She stressed that effective monetary and fiscal policies must work together to drive sustainable growth across the continent.
On trade, the IMF chief emphasized the importance of strengthening intra-regional trade in Africa and removing barriers to economic integration.
Drawing inspiration from the Association of Southeast Asian Nations, she urged African countries to expand collaborative frameworks that improve regional supply chains and shared infrastructure.
“Sometimes there are infrastructure obstacles. The World Bank is working on reducing those infrastructure bottlenecks that impede growth and trade. If Africa can remove these hurdles, it can unlock massive economic opportunities,” Georgieva noted.
She highlighted Africa’s enormous economic potential, citing its vast mineral and natural resources and a growing, youthful population.
“Africa has so much to offer the world. The continent’s youthful energy, combined with innovation and sound policy, can drive transformative growth,” she said.
Georgieva specifically recommended that countries such as Nigeria, Egypt, Ghana, and Côte d’Ivoire continue efforts to build economic buffers and fiscal space.
She explained that these buffers are essential for cushioning the impact of global economic downturns or fluctuations in commodity prices.
“I think a more unified, more collaborative continent can go a long way to becoming an economic powerhouse,” she added.
Georgieva also addressed the ripple effects of global tariffs on African economies, warning that although the impact might not be immediate or direct, the indirect consequences could severely hinder growth.
