Business

Nigeria Not Considering IMF Loan Despite Rising Debt — Edun

The Federal Government has said it has no immediate plans to seek financial assistance from the International Monetary Fund (IMF), despite growing concerns over the country’s rising debt profile.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday while addressing journalists at the ongoing IMF/World Bank Spring Meetings in Washington, D.C.

His clarification comes on the heels of recent data released by the Debt Management Office (DMO), which showed that Nigeria’s total public debt surged by N14 trillion to N159.27 trillion as of the fourth quarter of 2025.

The development has triggered fresh concerns, particularly following the National Assembly’s approval of a $6 billion external borrowing request by President Bola Ahmed Tinubu.

Reacting to speculations about a possible approach to the IMF for financial support, Edun said: “Nigeria has no plans at the moment to approach the IMF or any other source.”

Speaking further, the minister expressed concern over the worsening fiscal conditions across Africa, noting that a significant number of countries on the continent are either in or approaching debt distress.

According to him, “Nearly half of African countries are at or near debt vulnerability levels, with some already in distress.”

He attributed the situation largely to the high cost of borrowing, particularly the steep premiums placed on African countries in the global financial market.

“The high interest rates and risk premiums mean that a substantial portion of government revenue is channelled towards debt servicing, rather than critical sectors such as healthcare and infrastructure,” he said.

Edun added that President Tinubu has consistently advocated for a reassessment of how African economies are rated by global credit agencies, with a view to reducing borrowing costs and improving access to affordable financing.

He stressed the need for structural reforms across the continent, urging governments to leverage technology, including artificial intelligence, and encourage private sector participation to reduce dependence on expensive debt.

“We must focus on reforming our economies, embracing innovation, and creating an enabling environment for private investment to thrive,” the minister said.

Olayinka Babatunde

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