By Muhammad Abubakar
Nigeria has officially cleared its outstanding debt to the International Monetary Fund (IMF), marking a significant milestone in the country’s economic recovery efforts. This development follows a series of substantial repayments totalling $1.22 billion between the fourth quarter of 2023 and the second quarter of 2024, reducing Nigeria’s IMF debt from $3.26 billion in June 2023 to $1.16 billion by June 2024.
The IMF has acknowledged Nigeria’s commitment to meeting its financial obligations, noting that the country has no overdue payments as of April 30, 2024. This achievement reflects the government’s dedication to fiscal responsibility and economic reform.
In a statement, IMF First Deputy Managing Director Gita Gopinath commended Nigeria’s efforts, stating that the country’s debt level is “moderate and not high risk,” provided that sound economic policies are maintained. She emphasised the importance of continued domestic revenue mobilisation and targeted social interventions to sustain this progress.
Nigeria’s Finance Minister, Wale Edun, highlighted the government’s initiatives to enhance social investment programmes and strengthen domestic resource mobilisation through tax reforms and digitalisation. He also noted increased crude oil production, significantly boosting national revenue.
This financial turnaround positions Nigeria to engage more robustly with international financial institutions and investors, potentially attracting increased foreign investment and fostering economic growth.
The successful clearance of IMF debt underscores Nigeria’s commitment to economic stability and sets a positive precedent for other nations facing similar challenges.