IMF issues a warning to Nigeria about lower foreign loans amid shocks and contractions to the global economy.
The economies of Sub-Saharan Africa, especially Nigeria, are under pressure due to high borrowing costs and growing debt vulnerabilities.
The IMF suggests that Nigeria implement structural reforms, monetary, exchange rate, and fiscal policies in order to address its economic problems.
The International Monetary Fund has urged Nigeria to get ready for a significant decline in foreign loans as the global economy continues to experience new shocks and contractions.
Wenjie Chen, the IMF’s Deputy Divisional Chief, made this point in his keynote speech on Tuesday in Lagos at the International Monetary Fund Regional Economic Outlook. Chen contends that high borrowing costs, high interest rates, and the strengthening dollar have continued to put pressure on the economy of Sub-Saharan African nations like Nigeria.
She emphasized that because of the uncertainty surrounding the global economy, loans from China and other rich economies to Africa have declined. Chen noted that the public debt ratio in the area has increased over the last 10 years and issued a dire warning about the growing debt vulnerabilities in Nigeria and the rest of SSA.