The Federal Government has ruled out approaching the International Monetary Fund (IMF) for fresh borrowing, even as the Fund prepares a multi-billion-dollar support package for economies under strain.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this clear on Thursday while speaking to journalists on the sidelines of the ongoing World Bank/IMF Spring Meetings in Washington, D.C.
His remarks come a day after IMF Managing Director, Kristalina Georgieva, announced that the institution was putting together between $20bn and $50bn to assist countries grappling with economic pressures, particularly across Sub-Saharan Africa.
But asked whether Nigeria would tap into the facility, Edun was unequivocal.
“Nigeria has no plan at the moment to approach the IMF for any other such burden,” he said, signalling the government’s preference to avoid additional external debt from the Fund.
The IMF’s proposed financing is aimed at helping countries navigate mounting global uncertainties, including the economic fallout from ongoing geopolitical tensions. Georgieva urged nations in need of support to act swiftly, warning that delays in seeking assistance could deepen economic distress.
According to her, the Fund is already assessing demand from member countries, with at least a dozen - many in Africa - expected to require financial backing to manage existing and emerging economic challenges.
Even as Nigeria distances itself from the facility, Edun acknowledged that African economies are facing increasing pressure, much of it driven by external shocks. He pointed to the Middle East crisis as a major factor weighing on the region, particularly for oil-importing countries.
“These countries are not responsible for the situation, but they face significant consequences in terms of macroeconomic stability, growth and job creation,” he said, adding that such economies deserve greater international support.
The IMF has also warned that the global economic outlook is weakening. Georgieva said growth is projected to slow from 3.4 per cent last year to about 2.1 per cent in 2026, with the possibility of further decline if geopolitical tensions persist and energy prices remain high.
She noted that disruptions to supply chains and infrastructure are already pushing up costs and dampening growth worldwide, with the harshest impact being felt in low-income and energy-importing countries.
While no immediate requests for financial assistance were made during recent engagements with African finance ministers and central bank governors, the IMF chief maintained that countries should remain open to seeking help when needed.
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