Nigeria rejects fresh IMF bailout, insists reforms rebuilding economy

• Tinubu Won’t Reverse Reforms, Jimoh Ibrahim Assures Int’l Stakeholders • Economy Showed Resilience In Q1 Despite Shocks – Economists Nigeria will not approach the International Monetary Fund (IMF) for a bailout as war rages in the Middle East, which has pushed Premium Motor Spirit (PMS) beyond N1,300 per litre. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun , who stated this at the 2026 Spring Meeting of the World Bank and IMF in Washington DC, reiterated the government’s conviction in the country’s homegrown economic recovery strategy. Meanwhile, Nigeria’s Ambassador and Permanent Representative to the United Nations, Jimoh Ibrahim, has declared that President Bola Ahmed Tinubu will not back down on the administration’s economic reforms despite current hardships, assuring that Nigerians will soon reap the benefits. This came as economists have noted that Nigeria’s economy recorded a steady but cautious performance in the first quarter of this year despite persistent structural challenges, including insecurity, uneven sectoral growth, and pressure on consumers. Addressing African Finance Ministers on the sidelines of the meeting, Edun stated that Nigeria’s reform programme, sustained over the past two years, has begun to yield tangible results, restoring credibility to economic management and strengthening the country’s ability to withstand mounting global headwinds. A statement by the head of the Information and Public Relations Unit of the ministry, Efe Ovuakporie, quoted the minister as saying the government deliberately shifts towards market-led policies, stressing that Nigeria has resisted the temptation of administrative controls, particularly in the management of foreign exchange and petroleum pricing. “The direction is clear,” the minister said. “Nigeria is staying the course with internally driven reforms rather than turning to multilateral financing.” He, however, cautioned that despite Nigeria’s improving outlook, the broader African landscape remains fragile. He therefore called for accelerated, better-coordinated international financial support for vulnerable economies as discussions intensify around a proposed $50 billion global assistance package. While reforms have enabled Nigeria to build critical buffers, the minister noted that many African countries remain highly exposed to external shocks and urgently require support to stabilise their economies. Edun concluded that Nigeria’s reliance on market mechanisms has helped soften the impact of necessary adjustments, reducing dislocations and keeping the economy on a steady macroeconomic trajectory even as global uncertainties persist. Ibrahim, who was speaking at a parliamentary session on the sidelines of the ongoing IMF/World Bank Spring Meetings, stressed that the reforms, though painful in the short term, are essential for long-term growth and national prosperity. He noted that no meaningful global economic progress can be achieved without addressing rising tensions around Iran, particularly the strategic Strait of Hormuz. “No country can achieve significant economic development this year or thereafter until we jointly secure peace in the ongoing tensions involving Iran, especially as it concerns international passage through the Strait of Hormuz,” he said. Ibrahim warned that disruptions in the region could trigger far-reaching consequences for the global economy, given that over 25 per cent of the world’s seaborne oil, estimated at more than 20 million barrels per day, and about 20 per cent of liquefied natural gas, pass through the corridor. He added that major economies, including China, India, Japan and South Korea, would be severely impacted by any escalation due to oil price volatility, thereby complicating economic planning and deepening development challenges worldwide. On Nigeria’s domestic front, the envoy reaffirmed the Federal Government’s commitment to sustaining reforms, noting that legislative backing remains crucial in cushioning the effects on citizens. He emphasised that legislative action and planning must reflect current realities, urging stronger collaboration between the legislature and the executive to address economic challenges. Ibrahim advised global lawmakers to adopt cooperative frameworks similar to Nigeria’s parliamentary model under Senate President Godswill Akpabio, noting that such synergy is vital in reducing poverty and economic hardship. “President Bola Tinubu introduced reforms that will make Nigeria great. These policies may come with short-term pains, but they are indispensable for growth and economic development. Related News Rising prices may push over 20 million Africans into hunger, IMF warns Africa’s fiscal turning point: Tax reform and the fight against illicit financial flows Fresh concerns over funding risks as Nigeria’s public debt hits N159.28tr “The law must reflect the situation, while action and strategy must come from proper situational diagnosis. Parliament is not an exception to modern global realities,” he said. Ibrahim further called for stronger international cooperation among parliamentarians, stressing that global peace remains a prerequisite for sustainable development and effective economic planning. At the close of the session, Ibrahim bid farewell to his colleagues at the parliamentary forum, expressing appreciation for the relationships and networks built over the years. He disclosed that he would be stepping down from parliamentary duties following his appointment by President Tinubu as Nigeria’s Ambassador Extraordinary and Plenipotentiary to the United Nations, marking a transition into a new phase of global diplomatic service. The economists, who spoke at the European Business Chamber (Eurocham) Nigeria CEO Session held in Lagos themed, ‘Navigating the Q1 Economy and Financing Industrial Growth,’ however, noted that while macroeconomic stability appears to be improving, underlying risks could shape investment flows and long-term growth. According to Chief Economist at PwC Nigeria, Olusegun Zaccheaus, the economy progressed decently well in the first quarter despite external and domestic shocks. He explained that the monetary environment is expected to remain stable, while fiscal conditions continue to evolve without any major anticipated downturn. However, he emphasised that consumers remain under pressure, and growth across sectors has been uneven, with oil and gas outperforming sectors such as manufacturing. Zaccheaus identified insecurity as a major recurring challenge, warning that it continues to damage Nigeria’s global image and elevate sovereign risk, potentially discouraging foreign investment. He also stressed the urgent need to unlock productivity across the economy, particularly through reforms in the power sector. While acknowledging government’s efforts in addressing structural bottlenecks, he noted that sustained intervention is necessary to drive meaningful improvements. He projected a stronger economic performance in 2026 compared to 2025, urging the government to maintain policy consistency, strengthen security, and create a more investment-friendly environment. Zaccheaus highlighted renewed activity in the oil and gas sector due to returning investments after years of stagnation, while also pointing to continued growth in telecommunications and technology as bright spots in the economy. Chief Economist, First Bank Group, Chinwe Egwim, described the macroeconomic environment as stabilising, though influenced by global economic dynamics. She explained that fluctuations in global oil prices have created a dual effect, boosting government revenues while straining businesses and households at the microeconomic level. Egwim noted that while the overall outlook remains positive, there are noticeable financial pressures on businesses and consumers. From a credit perspective, she stated that liquidity in the financial system has improved since the third quarter of the previous year, supporting increased access to funding. However, she cautioned that many small and medium-sized enterprises still face challenges related to documentation, structuring, and meeting lending requirements. She added that credit availability is generally improving across core sectors, reflecting broader banking industry trends rather than isolated institutional efforts, emphasising the importance of proper financial structuring and repayment capacity for businesses seeking financing. General Manager, Eurocham Nigeria, Chigozie Okwara, described the event as critical, especially in light of new reforms spanning taxation, policy, and economic planning. Okwa said that initiatives are underway to enhance collaboration, attract investment, and transfer European technological expertise to Nigerian businesses. He noted that such partnerships aim to raise operational standards and competitiveness, with Nigerian participation already strong across joint ventures. He added that future efforts will focus on expanding business matchmaking opportunities and strengthening cross-border cooperation. Director, Head of Nigeria, European Bank for Reconstruction and Development (EBRD), Hamza Al-Assad, explained that Nigeria became a member and country of operation in 2025, with the bank establishing a local presence to support investment and development. Al-Assad stated that the institution evaluates a wide range of factors before financing projects, including financial viability, governance standards, regulatory conditions, and risk allocation. He emphasised the bank’s role not only in funding but also in helping businesses become more “bankable” by improving project structures and aligning with international standards. He added that Nigeria’s inclusion in the bank’s expansion into sub-Saharan Africa reflects both its economic potential and growing interest from international stakeholders. The EBRD is targeting key sectors and aims to work closely with local partners to drive sustainable investment.