Wale Edun has said Nigeria will not seek financial support from the International Monetary Fund despite mounting debt pressures, according to Nairametrics.
Speaking at a ministerial briefing during the IMF-World Bank Spring Meetings in Washington DC, Edun said the government is not considering borrowing from the lender or similar institutions. “Nigeria has no plans at the moment to approach the IMF or any other source.”
His comments come as concerns grow over rising debt levels across Africa. Edun noted that several countries on the continent are already in or nearing debt distress, driven in part by high borrowing costs.
“The premium that they pay for commercial debt is part of the reason why there is this distress, discomfort in the first place, in terms of the percentage of revenue that has to be given over to debt service, as opposed to health and so forth.”
Recent data highlights Nigeria’s fiscal position. The Debt Management Office reported that total public debt for federal and state governments rose by N14 trillion to N159.27 trillion at the end of the fourth quarter of 2025.
The National Assembly of Nigeria has also approved a $6 billion external borrowing request, raising questions about debt sustainability amid global uncertainty.
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Edun said structural reforms are needed to ease pressure on public finances, including improving efficiency through technology adoption and increasing private sector participation. He also pointed to the need to diversify funding sources to reduce reliance on expensive borrowing.
The minister added that Bola Ahmed Tinubu has called for lower risk premiums to make financing more affordable for African economies, amid ongoing concerns about how global rating agencies assess the continent.
What this means for Africa
Nigeria’s stance reflects a broader shift toward cautious borrowing as debt pressures rise across the continent. Avoiding IMF loans signals a preference for alternative financing, but it also puts more pressure on governments to manage debt sustainably.
With high interest rates and large portions of revenue going to debt servicing, African economies face tough choices between funding development and maintaining fiscal stability. How countries balance this will shape growth and resilience in the coming years.
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Image Credit: Nairametrics
