IMF Calls for Nigeria to Enhance Revenue and Redirect Spending Amid Debt Surge

The International Monetary Fund urged Nigeria’s Federal Government to improve revenue collection, remove tax system inefficiencies, and shift public funds toward growth-focused areas as the nation faces escalating debt and debt service expenses. This recommendation follows the Fund’s Fiscal Monitor report released during the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand.

Nigeria’s public debt increased by 71 per cent to N166.788 trillion by the end of June 2026, compared with N97.34 trillion at the end of 2023, despite a significant rise in government revenue. The statutory allocation for the three tiers of government grew by 112 per cent to N23.15 trillion in 2025 from N10.9 trillion in 2023.

IMF officials Rodrigo Valdés and Davide Furceri emphasized targeted transport subsidies to protect vulnerable Nigerians from fuel price hikes, noting that broad-based subsidies are costly and less effective than direct aid to those in need.