“IMF’s Bold Advice to Nigeria: How to Fix Economic Reforms and Win Public Trust”
By Achimi Muktar
As frustration mounts across Nigeria and other Sub-Saharan African nations undergoing tough economic reforms, the International Monetary Fund (IMF) has stepped in with recommendations aimed at reshaping the narrative. These suggestions focus on addressing the growing civil discontent and turning public opposition into support for reforms critical to stabilizing their economies.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa report highlights “adjustment fatigue” gripping nations like Nigeria, Ghana, Ethiopia, and Kenya, where reform measures have triggered social unrest and resistance. In Nigeria, particularly, protests and labour strikes have erupted in response to policies like petrol subsidy removal and foreign exchange deregulation.
However, the IMF believes a path forward exists—one that involves rethinking reform strategies and engaging citizens more effectively.
The Call for Strategic Rethink
In the report, the IMF emphasizes the need for reform strategies that foster inclusivity and public trust while maintaining momentum for economic recovery. “Realizing this opportunity requires rethinking reform strategies to build and maintain pro-growth coalitions among leaders and the general public,” the report states.
The IMF outlined key pillars for successful reform implementation:
Broad-Based Engagement: Governments must actively involve citizens through two-way dialogue, creating a sense of ownership for reforms among the population, businesses, and civil society.
Transparent Communication: Policymakers should clearly articulate the benefits of reforms, the risks of inaction, and the compensatory measures being implemented. This approach, according to the IMF, will counter misinformation and rebuild trust.
Partnerships with Influencers: Engaging parliamentarians, community leaders, and independent experts can amplify reform messaging and provide credible advocacy for change.
Targeted Social Support: Implementing safety nets like retraining programs and job assistance for those hit hardest by reforms can reduce resistance and ease the social cost of change.
Sequenced Reforms: Staggering reforms over time to prevent overwhelming citizens and prioritizing initiatives with immediate, tangible benefits will help win public support.
Rebuilding Trust in Institutions: Strengthening governance, improving transparency, and tackling corruption are essential to ensure that reforms are seen as credible and effective.
The Nigerian Reality
Nigeria’s reform agenda has been met with resistance from citizens grappling with higher living costs and reduced public services. Labour unions have staged strikes, and civil society groups have accused the government of failing to provide adequate safety nets for vulnerable populations.
The IMF acknowledges these challenges but insists that success hinges on trust and inclusivity. “Opinion surveys indicate that trust in the government’s ability to use public resources to promote the population’s well-being is still relatively low in many Sub-Saharan African countries,” the report notes.
The IMF also warns that reforms without complementary measures—such as job creation and social inclusion policies—risk perpetuating social frustration and undermining long-term economic stability.
Turning Pain into Gains
While reforms are painful, the IMF underscores their necessity for unlocking durable and inclusive growth. “As painful as the current policy choices are, deeper and broader reforms will be required to guarantee that countries reap the gains, and not just the pain, of reform,” the report states.
The Fund advises African leaders to demonstrate upfront wins, such as improved infrastructure, better service delivery, and robust economic policies, to galvanize public confidence in the reform process.
The Bigger Picture
The IMF’s Regional Economic Outlook serves as a roadmap for Sub-Saharan Africa’s policymakers, navigating a delicate balance between fiscal adjustments and social harmony. For Nigeria, the report presents an opportunity to recalibrate its approach, engage its citizens meaningfully, and deliver reforms that prioritize the welfare of the people.
By rethinking reform strategies and implementing the IMF’s recommendations, Nigeria could not only weather its current challenges but emerge as a stronger and more inclusive economy. The onus, however, lies with the government to prove that these reforms are for the collective good and not just a painful necessity.