Manny Ita –
The International Monetary Fund (IMF) has cautioned Nigeria to exercise prudence in managing its public debt following the country’s acquisition of more than $6 billion in fresh funding.
In its latest assessment, the IMF acknowledged Nigeria’s efforts to secure financing for economic reforms and infrastructure development but stressed that rising debt levels could pose long-term risks if not carefully handled. The Fund urged authorities to ensure that borrowed funds are used efficiently and directed toward productive investments that can stimulate growth and generate revenue.
The warning comes amid concerns over Nigeria’s debt sustainability, with analysts noting that increasing borrowing costs and exchange rate pressures could strain the country’s fiscal position. The IMF advised the government to strengthen revenue generation, particularly through improved tax collection and diversification away from oil dependence.
It also recommended tighter fiscal discipline, transparency in loan utilization, and reforms aimed at boosting investor confidence. According to the IMF, maintaining a balance between supporting economic growth and avoiding excessive debt accumulation will be critical for Nigeria’s financial stability in the coming years.
Nigerian officials have maintained that the new loans are part of a broader strategy to finance key sectors, including infrastructure, energy, and social programs, while managing existing obligations responsibly.
