IMF Report: Group Defends Tinubu, Blames Poverty Rise on COVID-19

The Democratic Front (TDF) has defended the economic reforms of President Bola Tinubu, arguing that the sharp increase in Nigeria’s poverty rate was largely driven by the economic fallout of the COVID-19 pandemic rather than policies introduced by the current administration.

The group made the clarification while reacting to the recent assessment of Nigeria’s economy by the International Monetary Fund (IMF), which broadly commended the government’s reform agenda but referenced concerns over rising poverty levels in the country.

In a statement signed by its Chairman, Mallam Danjuma Muhammad, and Secretary, Chief Wale Adedayo, TDF welcomed the IMF’s positive evaluation of the administration’s economic policies but said the poverty figures cited in the report required proper context.

According to the group, the IMF acknowledged that about three-quarters of the increase in poverty recorded by the World Bank occurred between 2019 and 2023, before Tinubu assumed office.

“It is necessary to acknowledge the section of the report that three quarters of the increase in poverty from 40 per cent to 61 per cent, as observed by the World Bank, actually occurred between 2019 and 2023, before the President Bola Ahmed Tinubu government assumed office,” the statement said.

TDF argued that the period coincided with the aftermath of the COVID-19 pandemic, which disrupted economic activities globally and significantly affected livelihoods in Nigeria.

“The period between 2019 and 2023 represents the post-COVID-19 years when pandemic-induced socio-economic decline deprived a vast percentage of the Nigerian population of stable income, and the gross national cash flow was devastated due to economic disruption in the supply value chain,” the group stated.

It maintained that the rise in multidimensional poverty reflected the lingering effects of the pandemic rather than the impact of reforms introduced under the Renewed Hope Agenda.

“The increase in poverty to 61 per cent as reported by the World Bank, and as contained in the IMF assessment statement on Nigeria’s economic outlook, was largely not a direct impact of Tinubu’s Renewed Hope Agenda reforms, but the economic aftermath of the COVID-19 pandemic that devastated the political, economic and social lives of the people,” the statement added.

The group also pointed to developments in the Middle East, saying global economic uncertainties triggered by the conflict involving Iran had created additional pressures for economies around the world, including Nigeria.

It argued that before the escalation of tensions in the region, the government’s reforms had begun to yield positive outcomes, including relative stability in fuel prices and improvements in the foreign exchange market.

According to TDF, the reforms helped maintain competitive petrol prices and strengthened efforts to stabilise exchange rates under a more market-driven framework.

The group further stated that the conflict had disrupted global economic conditions and increased pressure on energy markets, with direct implications for the cost of living in countries such as Nigeria.

“In a country like Nigeria, where the pump price of petroleum determines the cost of living, the war against Iran, which threw the global economy off balance, can be said to be a national tragedy,” it said.

TDF also expressed optimism that the Federal Government remained committed to ensuring that the benefits of the reforms would ultimately reach ordinary Nigerians.

It cited the recent approval of over N700 billion for the payment of 1,240 local contractors as evidence of efforts to boost liquidity in the economy, support businesses and strengthen activities across supply chains.

The group urged Nigerians to assess the country’s economic challenges within the context of global disruptions and support policies aimed at achieving long-term growth and stability.