By Teddy Nwanunobi
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said the country has no plans to approach the International Monetary Fund for loans, despite growing fiscal pressures.
Edun made this known during a Ministerial Press briefing at the ongoing IMF-World Bank Spring Meetings in Washington DC.
His comments, monitored by AljazirahNigeria, came amid broader concerns about rising debt levels across Africa and calls by the IMF for vulnerable countries to seek financial support where necessary.
The Minister emphasised that Nigeria is not considering borrowing from the IMF at this time.
“Nigeria has no plans at the moment to approach the IMF or any other source”.
He noted that many African countries are currently close to or already facing debt distress.
According to him, high borrowing costs remain a major challenge for the continent.
“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.
He added that addressing these structural issues is key to improving fiscal sustainability across Africa.
Edun’s statement comes a day after the Debt Management Office ,DMO, reported that Nigeria’s total public debt for federal and state governments increased by N14 trillion to hit N159.27 trillion at the end of the fourth quarter (Q4) of 2025.
The National Assembly recently approved a $6 billion external borrowing request.
Concerns remain about the cost and sustainability of new debt amid global uncertainties.
While Nigeria is currently avoiding IMF loans, its rising debt profile underscores the need for careful fiscal management and sustainable financing strategies.
Edun highlighted broader concerns about debt sustainability and financing conditions on the continent.
Nearly half of African countries are either in or close to debt distress.
High interest rates on commercial debt continue to strain government revenues.
A significant share of revenue is being used for debt servicing rather than critical sectors like health and education.
There are ongoing calls for a reassessment of how global rating agencies evaluate African risk.
He noted that President Bola Ahmed Tinubu has advocated for lower risk premiums to make financing more affordable for African countries.
The minister also stressed the need for structural reforms to reduce dependence on expensive borrowing.
Governments are encouraged to adopt technology, including artificial intelligence, to improve efficiency.
Increased private sector participation is seen as critical to reducing reliance on debt.
Economic reforms are needed to drive sustainable growth and revenue generation.
Diversifying funding sources will help ease fiscal pressure.
According to DMO, Nigeria’s external debt stood at N74.43 trillion as of December 2025, representing 46.73% of total public debt.
In dollar terms, external debt rose from $48.46 billion in September 2025 to $51.86 billion in December 2025, and from $45.78 billion in December 2024.
The Federal Government continued to dominate external borrowing, accounting for N66.27 trillion of the total external debt, while states and the FCT accounted for N8.16 trillion.
