Under President Bola Tinubu’s administration, Nigeria has made significant strides in reducing its debt to the International Monetary Fund (IMF), a move that signals fiscal discipline but also invites scrutiny amid rising overall debt. Official reports indicate that Nigeria’s IMF debt dropped from $2.47 billion in 2023 to $800.23 million by December 2024, a reduction of approximately 67.6%. Some sources, including posts on X, claim a decline from $3.26 billion, but this figure lacks corroboration from IMF records or Nigeria’s Debt Management Office (DMO), suggesting it may be inflated or conflated with other loans.
This achievement stems from strategic debt management, including timely repayments facilitated by improved revenue allocation. The Tinubu administration has reduced Nigeria’s debt servicing burden from 96% of revenue in 2023 to 67% in 2024, freeing up fiscal space for infrastructure and social investments. The presidency highlights this as evidence of economic stewardship, contrasting with critics who argue that new borrowings undermine these gains. For instance, Nigeria’s total public debt rose to ₦121.67 trillion ($91.46 billion) by March 2024, driven by fresh loans, including $13.8 billion from the World Bank, and the securitization of Ways and Means advances.
Stakeholders should note the complexities behind the IMF debt reduction narrative. Allegations of a missing $3.4 billion IMF loan, raised by the Auditor-General and pursued by the Socio-Economic Rights and Accountability Project (SERAP), cast shadows over transparency. While these claims remain unproven, they underscore the need for robust financial oversight. Furthermore, IMF data shared on X suggests Nigeria’s debt may have fallen even lower, to $416 million by April 2025, indicating ongoing repayments but also highlighting discrepancies in reported figures.
For investors and policymakers, this development offers both optimism and caution. The reduction in IMF debt strengthens Nigeria’s creditworthiness and reduces reliance on high-interest multilateral loans, potentially attracting foreign investment. However, the rising domestic and external debt profile, coupled with exchange rate volatility, poses risks to long-term fiscal sustainability. Stakeholders should advocate for greater transparency in debt reporting and prioritize investments that drive economic growth to offset borrowing costs.
In conclusion, Tinubu’s administration has achieved a notable reduction in Nigeria’s IMF debt, from $2.47 billion to $800.23 million, though claims of a $3.26 billion starting point are unverified. While this milestone reflects prudent financial management, stakeholders must remain vigilant about rising overall debt and transparency concerns. Cross-referencing primary sources like IMF reports and DMO data is critical for informed decision-making in Nigeria’s evolving economic landscape.
