IMF Warns Nigeria of Debt and Funding Challenges Ahead

The International Monetary Fund (IMF) has raised concerns regarding Nigeria's financial stability, highlighting the pressures from rising debt costs and diminishing access to foreign funding. Managing Director Kristalina Georgieva issued this warning following the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, North Carolina.

She noted that governments in emerging and low-income economies are struggling with high borrowing costs and limited options for financing development programs. Georgieva stated that public debt has reached nearly 100 percent of global GDP, surpassing post-World War II highs.

Although some improvements in debt situations have been observed in recent years, challenges remain for many countries. The IMF has urged Nigeria to enhance revenue mobilization, suggesting additional tax measures in its 2026 Article IV Consultation report, including changes to VAT, fuel products, and telecommunications services.

Georgieva called for decisive interventions for countries with unsustainable debts and emphasized the importance of creating an environment conducive to private investment.