President Bola Ahmed Tinubu’s administration has successfully reduced Nigeria’s outstanding debt to the International Monetary Fund (IMF) by a whopping 75% from $3.26 billion to $800.23 million.
This remarkable feat reflects the government’s deliberate efforts to stabilize the country’s external debt profile and strengthen macroeconomic fundamentals. The reduction in debt obligations to the IMF is a testament to the Tinubu-led government’s commitment to fiscal discipline and economic reform.
Public Debt: A Concern for Nigeria’s Economy
While the reduction in IMF debt is a positive development, Nigeria’s public debt remains a concern. As of 2025, Nigeria’s debt stock is projected to reach N187.79 trillion, up from N153.04 trillion in 2024. The debt-to-GDP ratio is expected to drop marginally to 49.6% in 2025.
The IMF has emphasized the need for Nigeria to mobilize revenue, reprioritize expenditure, and maintain debt sustainability. The fund has also encouraged the government to phase out costly and regressive energy subsidies, strengthen social protection, and enhance governance.
IMF’s Support for Nigeria’s Economic Reforms
The IMF has been supporting Nigeria’s economic reforms through various programs. The fund has commended the government’s efforts to restore macroeconomic stability, reduce poverty, and promote inclusive growth. As of 2025, Nigeria’s GDP is expected to continue growing, with an inflation rate standing at 24.23%.
As Nigeria continues on its path to economic recovery, the significant reduction in IMF debt and the government’s commitment to fiscal discipline are positive steps towards achieving long-term economic stability and prosperity.
