The International Monetary Fund (IMF) has jerked up Nigeria’s economic growth projection from 3.4% to 3.9% expansion in 2025 and 4.2% in 2026.
IMF Managing Director, Ms. Kristalina Georgieva, announced this on Tuesday while engaging with Civil Society Organisations (CSOs) at the ongoing 2025 Annual Meetings of the IMF and World Bank in Washington DC.
She however, warned that illicit financial flows and fiscal leakages could be tall barriers to the projected growth forcast.
“We believe that for countries like Nigeria, the IMF’s renewed focus on tracing Illicit Financial Flows could provide a blueprint for plugging the fiscal leakages that have long undermined revenue generation and sustainable growth,” she said.
According to the Fund Chief, illicit financial flows — which include stolen public funds, proceeds from criminal activities, and untraceable digital transactions — continue to erode governance systems, drain public resources, and cripple developmental efforts, especially in developing economies.
“You may have money just plainly stolen — money that belongs to the taxpayers. You may have private money directed for criminal activities undermining the welfare of citizens,” the Fund noted.
“Now with digital money, criminal activities can be funded without being traced. This is a serious problem, and we have to take it as such,” she said.
According to her, “Following the money” has now become a compulsory part of the IMF’s annual Article IV consultations — the standard economic health check for member countries. This ensures that the Fund routinely assesses each nation’s exposure to illicit flows and financial integrity risks.
The MD added that the IMF is embedding lessons from past experiences into its financial sector evaluation tools to better trace illicit transactions and vulnerabilities.
She also stated that for countries seeking IMF financial assistance, any program design will now include specific measures to address the problem of illicit flows, particularly where such challenges are deemed systemic.
Ms. Georgieva also said the Fund was supporting member countries through technical assistance and training to enable local authorities to detect, trace, and respond effectively to suspicious financial activities.
“We need to train country authorities so they can trace illicit financial flows, be more alert, and act quickly” she stated, adding “Digital tools help in tracking money, but they also create new avenues for evading oversight.”
