The International Monetary Fund attributes the recent fall in Nigeria’s inflation to stricter policy measures and exchange rate adjustments.

IMF Director for the African Department,
Abebe Selassie, made the remarks on Thursday at the launch of the Regional Economic Outlook for Sub-Saharan Africa in Washington, DC.

According to the National Bureau of Statistics, Nigeria’s headline inflation eased to 18.02 percent in September 2025.

“We find the declining inflation is consistent with the tightening of policies that have been taken in recent years, particularly on the monetary policy front, but also the effect of the exchange rate adjustment that took place over the last year or so having come through the system,” he said.

“So it is consistent with the policy calibration that we see. We’re encouraged by it, and I think there are still some ways to go to reach the government’s target.”

Selassie noted that while the rate of price increases is slowing, there has been a “level shift in the overall inflation rate.”

“And this is not unique to our countries; it’s elsewhere also, but particularly biting in our countries, exactly because this cost of living crisis has hit our people way more than others, with limited capacity to perhaps withstand this shock,” he said.

Selassie emphasized that the IMF does not want to downplay the major disruptions African countries have experienced in recent years due to multiple economic shocks, highlighting that public debt remains high in many nations across the region.

He added that countries in sub-Saharan Africa are “working to implement reforms that will promote higher economic growth.”

“That is one important input that will contribute to making debt servicing affordable,” he said.

The IMF official stated that while fiscal reforms are needed in many countries, the scope of revenue mobilisation and the reprioritisation of public spending varies from one nation to another.

“I think the broad direction of travel is one where our countries have been investing quite a lot in recent years, in infrastructure, in health, in public education, many important areas.

“Perhaps one area where we have not done as well is capturing the rate of return on all of these investments through the tax system.

“And so, we see scope for revenue mobilisation. But this mobilisation has to go hand in hand with showing that the money that is being collected is being used for the right reasons and purposes.

“And so when you talk about tax levels, with people considering that tax levels are high, it’s because they don’t see enough infrastructure services and public services in terms of health, education.

“So, also demonstrating that money is being collected is going to the right areas, minimising leakages and corruption are also part and parcel of the effort that has to take place,” Selassie noted.