ActionAid Critiques IMF Over Nigeria's Debt Crisis

ActionAid released a report on Tuesday criticizing the International Monetary Fund (IMF) for its role in worsening Nigeria's massive debt burden. The report reveals that Nigeria allocates 20.1% of its national revenue to external debt payments, while only 4.06% is spent on health and 4.40% on education.

This situation is part of a broader analysis of 29 IMF documents across 11 countries, including Nigeria, from February 2022 to February 2025. The report states that Nigeria's debt is the single biggest obstacle to increasing social spending and public services.

ActionAid's Nigeria Director, Andrew Mamedu, condemned the IMF's double standards, noting that Nigeria's public sector wage bill has remained frozen at 1.9% of GDP for six consecutive years, significantly below the African average of 7.6%. The report also mentions that the IMF has not recommended increasing public sector spending, despite Nigeria's pressing needs, and has instead advised increasing value-added tax and excise duties, which disproportionately affect low-income households.