The International Monetary Fund (IMF) has advised Nigeria and other African economies to step up domestic revenue mobilisation, arguing that there is still ample room to increase taxation despite prevailing fiscal pressures.
Speaking at a press briefing on the IMF’s 2025 Global Policy Agenda, Managing Director Kristalina Georgieva, citing Nigeria, Egypt, Ghana, and Côte d’Ivoire, urged African countries to move beyond hesitation and take decisive steps toward broadening their tax base and tackling evasion.
To him, “Don’t use any excuses around, ‘Oh, it’s difficult. We can’t really go for more tax,’ because yes, you can. There is a lot that can be done to broaden the tax base and reduce tax evasion and avoidance, especially through the use of technology.”
The IMF chief also called for fiscal reforms that would help build buffers against external shocks, which according to her are fast depleting, whilst ensuring that monetary policies tackle local inflation.
Her comments come as Africa grapples with a new wave of global economic uncertainty, with fragile and conflict-affected states falling further behind, and commodity-dependent economies like Nigeria facing renewed strain amid falling oil prices.
“Oil producers like Nigeria are under budget pressure due to lower oil prices,” she noted. “On the other hand, oil importers may benefit. But broadly, slowing global growth will affect everyone, and we have already downgraded the continent’s growth prospects.”
She called for a twin-track approach: fiscal reform to build economic buffers and targeted monetary policy responsive to local inflation dynamics. “You cannot simply copy what the central bank governor in the neighbouring country is doing. You must assess your own inflationary pressures and respond accordingly,” Georgieva said.
She also emphasised the reputational risks posed by corruption and conflict, saying the misdeeds of a few countries cast a shadow over the entire continent. “Make it so that the image of the whole continent changes,” she urged, calling for a cleaner governance record and deeper regional trade integration.
Drawing a comparison to ASEAN, Georgieva said Africa must accelerate infrastructure development and remove trade barriers to unlock its potential as an economic powerhouse. “Africa has so much to offer the world, its minerals, its natural resources, and its young population. A more unified, more collaborative continent can go a long way.”
