Nigerian Finance Minister Wale Edun has made it clear that he will not be applying for a loan from the International Monetary Fund (IMF), which is likely to reassure investors. On the sidelines of the World Economic Forum in Davos, Switzerland, Minister Edun stressed that Nigeria’s strong economic indicators, such as a positive trade balance and increasing foreign reserves, negate the need for an IMF loan.
“I can imagine the headlines if you saw a situation whereby you were saying Nigeria approaches the IMF for funding,” Minister Edun stated. “But the reality is that, of course, as a developing country, requiring investment, funds for the government, and investment in key infrastructure to improve the enabling environment for business, we need funds, and we have the need to borrow.”
Instead of relying on the IMF, Nigeria is actively pursuing alternative funding avenues. “We have relied on relatively cheap funding from the multilateral, from the World Bank, from AFDB, and the whole spectrum of funding has been used,” the Minister explained.
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Furthermore, the government is actively engaging with Nigerian and international investors to stimulate economic growth. “We have relied on Nigerian savings by convincing them of the macroeconomic plan of the president, and what it holds in terms of the prospects for growth of the economy and business, and improvement of the business environment,” Minister Edun said.
This approach, which includes tapping into the Eurobond market and encouraging foreign direct investment (FDI), reflects the government’s confidence in Nigeria’s economic trajectory. “We have to remember that at this time, we have had significant gains in terms of improving the economic environment,” Minister Edun confidently asserted.
