Nigeria rules out IMF borrowing despite proposed $50bn global support fund

The Federal Government on Thursday said it has no plans to seek financial assistance from the International Monetary Fund (IMF), despite the global lender’s proposal to mobilise between $20bn and $50bn to support struggling economies, particularly in Africa.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known during a press briefing at the ongoing Spring Meetings of the World Bank and IMF in Washington DC, United States.

His clarification comes after IMF Managing Director, Kristalina Georgieva, advised countries facing economic pressure to act quickly in accessing financial support when needed, warning that delays could worsen economic conditions.

She also disclosed that the IMF was preparing between $20bn and $50bn to assist member countries, especially those in Sub-Saharan Africa, grappling with economic challenges.

However, responding to questions on whether Nigeria would consider tapping into the facility, Edun ruled out any such plan.

“Nigeria has no plan at the moment to approach the IMF for any such support,” he said.

He added that African countries require additional assistance amid rising global pressures, noting that ongoing geopolitical tensions, including the Middle East crisis, are having a disproportionate impact on oil-importing economies in Africa.

According to him, such developments threaten macroeconomic stability, growth prospects and job creation efforts across vulnerable economies.

He further stressed the need for targeted support to countries most exposed to external shocks, particularly energy-importing nations.

Georgieva had earlier warned that the global economy is already feeling the effects of geopolitical tensions, with supply chain disruptions and rising energy costs driving inflationary pressures and slowing growth.

She projected global growth to decline from 3.4 per cent last year to 2.1 per cent in 2026, warning that prolonged conflict and sustained high oil prices could further weaken the global outlook.

She added that in a worst-case scenario, global growth could drop to around 2 per cent, with the most severe impact felt by fragile and energy-importing economies, many of which are in developing regions.