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FG Rejects IMF Funds Amid Rising Debt Fears

Nigeria has stated that it will not seek additional funding from the International Monetary Fund despite plans by the lender to provide fresh support for countries facing economic challenges.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known while speaking to journalists on the sidelines of the World Bank and IMF Spring Meetings in Washington, D.C.

His comments followed the IMF’s proposal to mobilise between 20 billion dollars and 50 billion dollars to assist economies, particularly in Sub-Saharan Africa, grappling with global economic pressures.

However, Edun made it clear that Nigeria has no intention of accessing the facility, stressing that the government is cautious about increasing its external debt burden.

His stance comes amid growing concerns over the country’s rising debt profile, which reportedly reached 159.28 trillion naira as of December 31, 2025, reflecting a 3.9 percent increase from 153.29 trillion naira recorded at the end of September.

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The continuous rise in public debt has sparked debate over fiscal sustainability, especially as the government continues to rely on external financing to fund development projects.

Meanwhile, the World Bank recently approved loans worth 1.57 billion dollars for Nigeria to support human capital development, particularly in improving health outcomes for women, children, and adolescents.

Despite such inflows, the Federal Government is distancing itself from further borrowing from the IMF, even as global financial institutions expand support mechanisms for vulnerable economies.

Earlier, the IMF Managing Director, Kristalina Georgieva, said the proposed funding window is aimed at helping countries cope with global shocks, including geopolitical tensions affecting energy markets and supply chains.

She warned that delays in accessing financial support could worsen economic conditions, noting that several countries, especially in Africa, may require assistance.

Georgieva also projected that global economic growth could slow to about 2.1 percent in 2026, down from 3.4 percent the previous year, with further risks if global tensions persist.

Despite these concerns, Nigeria has maintained its position, signalling that it will not participate in the IMF funding programme or take on additional debt from the institution.

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