Group Welcomes IMF Report, Says Rise in Poverty Predates Tinubu Reforms

Group Welcomes IMF Report, Says Rise in Poverty Predates Tinubu Reforms The Democratic Front (TDF) has welcomed the recent statement by the International Monetary Fund (IMF) on Nigeria, particularly its positive assessment of the economic reform agenda of President Bola Ahmed Tinubu's administration. However, the group has challenged the notion that the increase in Nigeria's poverty rate is directly attributable to the current administration's reforms. In a statement jointly signed by its Chairman, Mallam Danjuma Muhammad, and Secretary, Chief Wale Adedayo, TDF noted that the IMF report acknowledged that nearly three-quarters of the increase in poverty—from 40 percent to 61 percent, as reported by the World Bank—occurred between 2019 and 2023, before President Tinubu assumed office. According to the group, this acknowledgment underscores the need to examine the underlying economic factors responsible for the sharp rise in multidimensional poverty during that period. "The years between 2019 and 2023 were marked by the devastating socio-economic consequences of the COVID-19 pandemic, which significantly disrupted economic activities, weakened supply chains, reduced household incomes, and constrained national cash flow," the statement said. TDF argued that the increase in poverty levels reported by the World Bank and referenced in the IMF assessment should largely be viewed as a consequence of the economic fallout from the pandemic rather than a direct result of the Tinubu administration's Renewed Hope Agenda reforms. The group also highlighted the impact of ongoing geopolitical tensions in the Middle East on Nigeria's economy. It noted that prior to the recent escalation involving the United States, Israel, and Iran—which affected global energy markets and disrupted activities around the Strait of Hormuz—the Tinubu administration's reforms had begun to yield positive results. These included relatively stable petroleum prices within the N700 to N800 range and improved exchange rate stability under the foreign exchange market reforms. "In a country like Nigeria, where fuel prices significantly influence the cost of living, the conflict involving Iran and its impact on global markets has presented fresh economic challenges. Nigeria is fortunate to have embarked on a comprehensive economic reset before these developments; otherwise, the nation could have faced a far more severe economic situation," the group stated. TDF further commended the administration's commitment to ensuring that the long-term gains of its economic reforms translate into tangible benefits for citizens. The group cited remarks by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, reaffirming the government's resolve to improve living conditions through sustained economic reforms. According to TDF, this commitment is evident in the recent approval of over N700 billion for payments to 1,240 local contractors, a move aimed at fulfilling government obligations, improving liquidity, and boosting activities across the supply chain. The group expressed optimism that continued implementation of the administration's economic policies would strengthen economic resilience and ultimately improve the welfare of Nigerians.