The International Monetary Fund (IMF) has raised fresh concerns over Nigeria’s rising debt profile, warning that citizens may face harsher economic conditions in the months ahead as the cost of living continues to climb.
The Fund noted that surging food and transport costs, driven by global economic shocks, are already placing increased pressure on households across the country.
Despite a recent rally in global oil prices well above the $60 per barrel benchmark in Nigeria’s 2026 budget the IMF cautioned that the country’s growing debt burden remains a significant risk to economic stability.
Key Nigerian crude grades, including Brass River and Qua Iboe, were recently priced above $113 per barrel, buoyed by global uncertainties such as tensions surrounding US–Iran negotiations.
Speaking on the development, Abebe Selassie, Director of the IMF’s African Department, said the ripple effects of global disruptions are already evident in rising transportation and fertilizer costs, further worsening food insecurity across Nigeria and the broader region.
He called on governments to stay committed to ongoing economic reforms, stressing the need for prudent debt management, improved revenue generation, and prioritisation of critical spending.
According to Selassie, policy consistency and efficient implementation will be key for Nigeria and other African economies to navigate the current wave of economic shocks and safeguard long-term stability.
ELIJAH ADEYEMI
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