October 25, 2024
By Samuel Ogunsona
The International Monetary Fund (IMF) has announced that Nigeria’s Government has not requested funding support from the organization.
Abebe Selassie, Head of the African Department at the IMF, made this statement at the regional economic outlook for Sub-Saharan Africa press conference on Friday during the World Bank/IMF meetings in Washington DC.
Nigeria has recently implemented economic reforms aimed at restructuring and fixing structural distortions.
These reforms include removing petrol subsidies and unifying foreign exchange market windows, which have been recommended by the IMF and World Bank for years to drive economic growth.
However, these policies have caused economic hardship for many Nigerians, with increased prices and reduced purchasing power.
Typically, the IMF and World Bank require such reforms as prerequisites for funding support.
Despite this, Nigeria’s Government has not approached the IMF for funding since implementing these reforms, according to Mr. Selassie.
“No request for funding from Nigeria at the moment,” he said.
He added, however, that it is the right of every country to borrow and access concessionary funding from the IMF.
In a related development, the IMF had concluded a Post Financing Assessment with Nigeria in February 2024, which found that Nigeria’s capacity to repay the Fund is adequate.
The assessment also highlighted the Government’s efforts to address structural issues, including fuel subsidy removal and exchange rate unification.
