Nigeria’s debts continue to grow as the government shops around for all available credit, not minding the toxicity. I received a video showing African countries that are heavily indebted to the International Monetary Fund, and Nigeria’s name was absent. Many Nigerians were happy and gladly reposted the same video as if freedom from the IMF loan were freedom from toxic loans. Countries that owe the IMF substantial debt find it difficult to obtain loans from other sources, as the IMF is one of the main institutions that recommends or gives support to countries seeking loans from major private creditors. When the Nigerian government under Muhammadu Buhari owed the IMF, it could not borrow money and had to resort to borrowing from the Central Bank of Nigeria. So, the current Nigerian government has been playing its game wisely.
The Bola Tinubu administration has been active in the loan market since it came on board. It has a record-breaking loan profile. Nigeria’s addiction to borrowing has reached a crescendo under this administration. Nigeria’s external debts, according to a recent report from the Debt Management Office, are over US$51.8bn, including the US$6.45bn from the World Bank and the budget support loan of US$6bn approved by the Senate, among others.
