The International Monetary Fund on Friday denied speculation that the Nigerian Federal Government had requested funding from the lender.
This clarification came from the IMF’s Director of the African Department, Mr. Abebe Selassie, during a press conference in Washington, D.C., United States, as he provided insights on the Regional Economic Outlook for Sub-Saharan Africa for October 2024.
“No, there has not been a request for funding from Nigeria,” Selassie said in response to a question about whether the Nigerian government was considering approaching the IMF for funds.
“To be very clear, this question has also arisen concerning some other countries. If and when countries turn to us, we hope they do so with a clear plan for the economic reforms they wish to pursue, with our support helping to reduce the funding costs they face.
“It is the right of any country in good standing with the IMF to borrow and access the concessional financing we provide. But, at present, there is no request for funding from Nigeria,” Selassie added.
The report also projected a rise in Nigeria’s Gross Domestic Product from 2.9 per cent in 2024 to 3.2 per cent in 2025.
The administration led by President Bola Tinubu has removed the fuel subsidy and announced the unification of the foreign exchange rate.
These reforms have presented economic challenges for ordinary Nigerians, with high costs of food and transportation, among other impacts.
Due to these reforms, the IMF official highlighted the need to “put measures in place to support the most vulnerable with social protection over the years, as these reforms are implemented,” adding that savings from the removal of the fuel subsidy should be used to cushion the harsh economic impact on vulnerable households.
As outlined in a report titled IMF Executive Board Concludes Post Financing Assessment with Nigeria, the Fund noted that stalled per-capita growth, poverty, and high food insecurity are worsening the ongoing cost-of-living crisis in Nigeria.
The report comes amid rising inflation, currency crises, weak economic growth, and business closures.
The IMF’s Division Chief of the Fiscal Affairs Department, Davide Furceri, emphasised that Nigeria must adopt more effective revenue mobilisation strategies to ease the financial burden.
Furceri noted that Nigeria’s debt service-to-revenue ratio stands at approximately 60 per cent, which severely limits the government’s ability to invest in social and economic programmes.
This clarification came from the IMF’s Director of the African Department, Mr. Abebe Selassie, during a press conference in Washington, D.C., United States, as he provided insights on the Regional Economic Outlook for Sub-Saharan Africa for October 2024.
“No, there has not been a request for funding from Nigeria,” Selassie said in response to a question about whether the Nigerian government was considering approaching the IMF for funds.
“To be very clear, this question has also arisen concerning some other countries. If and when countries turn to us, we hope they do so with a clear plan for the economic reforms they wish to pursue, with our support helping to reduce the funding costs they face.
“It is the right of any country in good standing with the IMF to borrow and access the concessional financing we provide. But, at present, there is no request for funding from Nigeria,” Selassie added.
The report also projected a rise in Nigeria’s Gross Domestic Product from 2.9 per cent in 2024 to 3.2 per cent in 2025.
The administration led by President Bola Tinubu has removed the fuel subsidy and announced the unification of the foreign exchange rate.
These reforms have presented economic challenges for ordinary Nigerians, with high costs of food and transportation, among other impacts.
Due to these reforms, the IMF official highlighted the need to “put measures in place to support the most vulnerable with social protection over the years, as these reforms are implemented,” adding that savings from the removal of the fuel subsidy should be used to cushion the harsh economic impact on vulnerable households.
As outlined in a report titled IMF Executive Board Concludes Post Financing Assessment with Nigeria, the Fund noted that stalled per-capita growth, poverty, and high food insecurity are worsening the ongoing cost-of-living crisis in Nigeria.
The report comes amid rising inflation, currency crises, weak economic growth, and business closures.
The IMF’s Division Chief of the Fiscal Affairs Department, Davide Furceri, emphasised that Nigeria must adopt more effective revenue mobilisation strategies to ease the financial burden.
Furceri noted that Nigeria’s debt service-to-revenue ratio stands at approximately 60 per cent, which severely limits the government’s ability to invest in social and economic programmes.
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