Ease Monetary Policy As Inflation Improves, But Stay Data-Driven, IMF Advises Nigeria

The International Monetary Fund (IMF) has said that improvements on Nigeria’s inflation front suggest that a less tight monetary policy stance may now be appropriate. 

The fund, however, stressed that credibility and clear communication by the Central Bank of Nigeria (CBN) remain critical.

The IMF’s deputy director in charge of the Monetary and Capital Markets Department, Athanasios Vamvakidis, stated this at the Global Financial Stability Report (GFSR) press briefing during the 2026 Annual Meetings of the World Bank and IMF in Bangkok.

Responding to questions on Nigeria, the IMF said transparent monetary policy communications are key to containing the wave of inflationary shocks.

On strengthening the banking sector, which has been described as successful, the IMF said emerging economies need appropriate regulations after recapitalisation to prevent risks building up.

Meanwhile, in its Global Financial Stability Report, the fund explains that three risks could trigger market turmoil: pressures in the bond market affecting risk sentiment, an AI-related market correction, and growing concentration of risks around a small number of companies and expectations of future earnings.

The report revealed that the Fund examined 14 public AI transactions involving $300 billion in equity and $650 billion in debt in exchange for $1.4 trillion in future revenue commitments, warning that the scale and circular nature of such deals could amplify shocks if AI revenues disappoint.

For emerging markets like Nigeria, the Fund called for tighter financial conditions, currency pressures and refinancing risks, advising policymakers to strengthen resilience.