”But in the interim, carefully looking at all of the options the country has to borrow in a contained way will be part of that solution.”
The IMF has endorsed Nigeria’s short-term borrowing strategy while calling for stronger revenue generation to ensure long-term fiscal stability.
The International Monetary Fund (IMF) has supported Nigeria’s plans to secure additional loans to address immediate financial gaps, but stressed the need for enhanced revenue mobilisation. Abebe Aemro Selassie, Director of the IMF’s African Department, said at the Spring Meetings: “In the long run, the financing gap can only be filled by permanent sources such as revenue mobilisation.” He praised Nigeria’s cautious borrowing approach and recent reforms, including subsidy removal and FX adjustments.
Selassie commended the government for tackling macroeconomic imbalances but urged expanded social protection to shield vulnerable citizens from reform shocks. “It’s been really good to see the government taking these issues head-on,” he said, while emphasising that borrowing must remain measured to avoid unsustainable debt.
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