IMF may not lend Nigeria the money that it needs to plug its 2017 budget deficit.

This is according to a 68-page report seen by Reuters.

The development could delay talks over the $1.4 billion, which translates to 602 million Naira that Buhari’s government needs. 

The Washington-based fund wants Nigeria to introduce immediate changes to its exchange rate policy.

It is also expected to tell the government, through the report that its recent reform plan is not enough to drag Nigeria’s economy out of recession.

"Much more needs to be done," the IMF said in the document, written after a final meeting between its representatives and top officials in Abuja.

The fund is expected to issue its opinion on Nigeria's economy on March 29.

"Further actions are urgently needed," it said.

The report - from the fund's acting secretary and addressed to members of its executive board - is set to form part of the IMF's verdict, though Nigeria can request alterations.

Three people familiar with the negotiations said it would send an important signal to institutional lenders.

The World Bank has been in talks with Nigeria for a loan of at least $1 billion for more than a year and the African Development Bank (AfDB) has $400 million on offer, but discussions have stalled over economic reforms.