FG Rules Out Accessing IMF’s Proposed $50bn Support Fund
FG Rules Out Accessing IMF’s Proposed $50bn Support Fund
The Federal Government has stated that it has no intention of seeking financial assistance from the International Monetary Fund’s proposed $50bn support package for struggling economies, particularly in Africa.
Minister of Finance and Coordinating Minister for the Economy, Wale Edun, made this known on Thursday during a press briefing at the ongoing Spring Meetings of the World Bank and the International Monetary Fund in Washington, D.C.
His remarks followed an earlier announcement by IMF Managing Director Kristalina Georgieva, who disclosed that the Fund was considering deploying between $20bn and $50bn to assist countries grappling with economic challenges, including several in Sub-Saharan Africa.
Georgieva had advised nations facing fiscal strain to act promptly in seeking support, warning that delays could deepen economic difficulties. She noted that the proposed funding would address both ongoing financial pressures and emerging economic risks across member countries.
However, responding to questions on whether Nigeria would access the facility, Edun said the government had no such plan at the moment, adding that the country was not looking to take on additional financial obligations from the IMF.
Despite ruling out borrowing, the minister emphasised that African countries require increased global support, particularly in light of the economic fallout from ongoing tensions in the Middle East.
He noted that while African nations are not responsible for the crisis, they are disproportionately affected through rising costs, slower growth, and mounting pressure on job creation and poverty reduction efforts.
Edun pointed out that oil-importing countries in particular are facing heightened vulnerability and should receive targeted assistance to cushion the impact of external shocks.
Earlier, Georgieva highlighted that many of the countries most affected by the Middle East crisis are in Sub-Saharan Africa, adding that the IMF was actively assessing those in urgent need of support.
She also stressed the importance of sound fiscal management, urging governments to build financial buffers during stable periods to better withstand economic disruptions.
According to her, African finance ministers and central bank governors who met with the IMF recently did not request immediate funding but instead sought policy guidance to navigate current challenges.
Georgieva further warned that the ongoing conflict in the Middle East is already weighing on the global economy, citing disruptions to supply chains and infrastructure damage as key factors driving inflation and slowing growth.
She projected a decline in global economic growth from 3.4 per cent last year to 2.1 per cent by 2026, cautioning that prolonged conflict and sustained high oil prices could worsen the outlook.
In a worst-case scenario, she said, global growth could fall to as low as two per cent, with the most severe impact likely to be felt by low-income and energy-importing countries.
