The Federal Government has ruled out any move to seek fresh loans from the International Monetary Fund, despite a newly announced support window for struggling economies.
The position was made clear on Thursday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing at the ongoing World Bank/IMF Spring Meetings in Washington DC.
Edun stated that Nigeria is not considering tapping into the IMF’s proposed funding support, which is expected to range between $20bn and $50bn for vulnerable economies, especially in Africa.
“Nigeria has no plan at the moment to approach the IMF for any other such burden,” he said.
His comments came a day after IMF Managing Director, Kristalina Georgieva, urged countries facing economic pressure to act quickly when seeking financial assistance. She warned that delays could worsen already fragile economic conditions.
“My advice is that when you need help financially, don’t hesitate to move fast, because the sooner we act, the more we protect the economy,” she said.
Georgieva also revealed that the IMF is preparing a support package estimated at between $20bn and $50bn. The fund is expected to assist countries dealing with both existing economic challenges and emerging crises, particularly in Sub-Saharan Africa.
Despite this offer, Nigeria has chosen to stay away from additional borrowing through the IMF at this time.
Speaking further, Edun stressed that African countries are currently under significant economic strain and require urgent global support. He pointed to the ongoing Middle East crisis as a major factor affecting economies across the continent.
According to him, African nations are not responsible for the crisis but are among the hardest hit. He said the situation is putting pressure on economic stability, slowing growth, and weakening job creation efforts.
“This is in terms of the threat to macroeconomic stability, growth trajectories, and their ability to create jobs and reduce poverty in their countries,” Edun explained.
He added that oil-importing countries in Africa are particularly vulnerable and should receive more international support to cushion the impact.
On her part, Georgieva noted that many of the countries most affected by the global shocks are located in Sub-Saharan Africa. She said the IMF is working to identify nations that may urgently require assistance.
“We are very determined to use this week to identify which of the countries must get our support,” she stated.
She also advised governments to maintain strong fiscal discipline and build economic buffers during stable periods to better withstand shocks.
The IMF chief disclosed that during her recent meeting with African finance ministers and central bank governors, there was no immediate request for financial aid. Instead, countries sought policy guidance to manage their economies.
However, she maintained that financial support may still be needed in the near future if conditions worsen.
Georgieva further warned that the Middle East conflict is already impacting the global economy. She said disruptions to supply chains and damage to infrastructure are driving up costs and slowing growth worldwide.
According to her projections, global economic growth could drop from 3.4 per cent recorded last year to about 2.1 per cent in 2026. She warned that a prolonged crisis, especially with high oil prices, could make the situation worse.
“But if the conflict persists, and oil prices stay high for an extended period, we must brace for tough times ahead,” she said.
She added that in a worst-case scenario, global growth could fall to as low as two per cent, with energy-importing countries facing the greatest risks.