The International Monetary Fund (IMF) has highlighted Nigeria’s deepening economic crisis, citing stalled per-capita growth, heightened poverty, and severe food insecurity.
The report underscores the challenges posed by rising inflation, an exchange crisis, weak economic growth, and business closures. Low revenue collection is identified as a hindrance to public services and investments.
The IMF acknowledges Nigeria’s difficult external environment and domestic challenges, emphasizing the need for restoring macroeconomic stability and fostering sustained, inclusive growth.
Despite these challenges, the report expresses optimism about the new administration’s efforts to address structural issues, including fuel subsidy removal and exchange rate unification.
However, concerns arise about Nigeria’s rising debt service costs, potentially affecting debt servicing ability, credit rating outlook, and borrowing costs.
Professional services firm PricewaterhouseCoopers warns that Nigeria’s debt service costs could escalate, impacting fiscal sustainability.
