Nigeria still borrowing amid high debt costs – IMF

Nigeria’s engagement with the global debt market remains vibrant despite challenges posed by high borrowing costs, the International Monetary Fund has said

During a press conference on the global financial stability report at the IMF/World Bank annual meetings in Washington DC, the IMF’s Financial Counsellor and Director of Monetary and Capital Markets, Tobias Adrian, said that Nigeria and other frontier markets have maintained significant activity in the debt market throughout 2024, even though financing costs have surged compared to pre-2021 levels.

He said, “Frontier markets, including Nigeria, have been active in the debt market this year, and though access to financing is still more expensive than before, the overall issuance levels have been encouraging.”

However, the IMF expressed support for Nigeria’s recent monetary policy measures, particularly the Central Bank of Nigeria’s interest rate hikes and foreign exchange reforms, which have been designed to stabilise the economy.

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