Small businesses in Nigeria may soon feel the ripple effects of fiscal decisions at the top, as the International Monetary Fund (IMF) calls on the federal government to prioritize disciplined spending and smarter resource allocation amid growing global economic uncertainties.
At the 2025 IMF/World Bank Spring Meetings in Washington, D.C., IMF officials highlighted the need for Nigeria to strengthen its fiscal resilience. Davide Furceri, a Division Chief in the Fund's Fiscal Affairs Department, acknowledged recent reforms but emphasized that deeper, sustained discipline is critical to support economic growth and stability.
"Governments must spend wisely, especially when fiscal space is tight," Furceri said, noting that Nigeria must balance urgent social needs with limited resources. He advised that improved revenue generation and efficient public spending—particularly in infrastructure and social services—are key to unlocking growth for all, including local businesses.
Vitor Gaspar, Director of the IMF's Fiscal Affairs Department, added that fiscal policy should act as a stabilizing force, not a source of volatility. He urged Nigeria to build financial buffers and reduce public debt while investing in credible institutions that support long-term economic planning.
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Gaspar stressed the importance of trust and transparency in public finance: "Ministers of finance must build trust, tax fairly, and spend wisely."
For SMEs, these fiscal strategies are more than just macroeconomic buzzwords—they translate to better infrastructure, more reliable public services, and a business environment that fosters sustainable growth.
As Nigeria navigates turbulent global trade conditions and rising economic pressures, the IMF's message is clear: stronger fiscal discipline and smarter spending today will pave the way for economic stability tomorrow.
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