The International Monetary Fund (IMF) has disclosed that Nigeria has the capacity to repay the N3 trillion ($2.82 billion) debt owed the global body.
This is following the conclusion of a recent Executive Board Post Financing Assessment with the West African country, and some recent reforms.
“The Executive Board of the International Monetary Fund (IMF) concluded the Post Financing Assessment (PFA) and endorsed the Staff Appraisal on a lapse-of-time basis. Nigeria’s capacity to repay the Fund is adequate,” the IMF said.
The Debt Management Office (DMO) estimates that as of September 2023, Nigeria’s debt stock was N87.9 trillion ($114.35 billion,).
While domestic debt was N55.93 trillion ($72.76 billion), external debt was N31.98 trillion ($41.59 billion), and Nigeria owed the IMF over N3 trillion ($2.82 billion).
However, there have been concerns raised about the government’s potential inability to pay off its debt.
The IMF also enumerated Nigeria’s economic issues in a thorough evaluation, citing high rates of poverty, slowed per capita growth, and severe food insecurity despite ongoing reforms.
“Like many other countries, Nigeria faces a difficult external environment and wide-ranging domestic challenges. External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation,” the IMF’s statement partly read.
