Economy
IMF to mediate between debtor countries and creditors
The International Monetary Fund (IMF) says it is playing an active role in mediating on the debt debacle facing some countries. The Managing Director of IMF, Kristalina Georgieva, said this on Friday in Marrakech, at the Fund 2023 Annual Meetings Plenary. According to Georgieva, more than half of low-income countries remain in, or are at high risk debt distress. She said that about a fifth of emerging economies faced “default-like spreads. The common framework is starting to deliver on debt restructurings, albeit slowly. And the more recent Global Sovereign Debt Roundtable established by the Indian G20 presidency, the IMF and the World Bank, is bringing all relevant creditors and debtors together with promising signs, ” she said. The IMF managing director said that the fund was also committed to finding a lifeline for many countries in their time of need, through a “global financial safety net. Since the onset of the pandemic, we have provided about one trillion dollars in liquidity and financing. This came via 650 billion dollars Special Drawing Rights (SDRs) and 320 billion dollars in lending to 96 countries, including 56 low-income nations,” she said.
She said that the IMF activated a programme of direct debt relief to its poorest members and also mobilised emergency financing during the COVID-19 pandemic. She added that the IMF also inaugurated its newest instrument, the Resilience and Sustainability Trust (RST). “For the first time in history, the RST provides long-term affordable resources to vulnerable low, and middle-income countries. One year after it was operationalised, we have 11 countries benefitting from RST support to help them adapt and build resilience, especially to climate change,” Georgieva said.
She said “today marks an important milestone in our collective efforts to strengthen support for our most vulnerable members. I am delighted to announce that we have successfully met the fundraising targets for the Poverty Reduction and Growth Trust (PRGT) agreed to in July 2021. Reaching these targets is critical to allow the IMF to continue to support low-income countries with zero-interest rate financing to meet their evolving needs. Low-income countries have been hit hard by multiple global shocks in recent years. Not only are they bearing the brunt of economic scarring from the pandemic, these countries are also grappling with food price shocks, high debt, and the increasing occurrence of climate disasters. Throughout these challenges, the IMF has been a strong partner for low-income countries.
“Since the onset of the pandemic, zero-interest lending through the PRGT has increased fivefold – to about US$30 billion – benefiting 56 countries. Currently, 30 countries (almost 45 percent of all PRGT-eligible countries) have an ongoing PRGT-supported program, the largest share since the inception of the PRGT in 2009. Through these programs, the IMF is playing a crucial role in supporting strong policies to drive sustained and inclusive growth, catalyzing financing from partners, and unlocking debt treatment where needed. Looking ahead, demand for PRGT support is projected to reach nearly US$40 billion during 2020-24, about five times the historical average. The IMF has stepped up its support to low-income countries in several ways. Within weeks of the pandemic, we scaled up our emergency financing at unprecedented speed, providing a ‘lifeline’ to our most vulnerable members.
“A year later, the 2021 SDR allocation was an additional ‘shot in the arm’ that provided liquidity to help low-income countries face the immediate impacts of the pandemic. Today, SDR channeling from economically stronger members to the PRGT provides a much-needed ‘booster’ to help low-income countries tackle the economic fallout of multiple shocks and address transformational challenges. Heading into the Annual Meetings, we had just successfully met our target to raise $17 billion (SDR 12.6 billion) for PRGT loan resources. And here in Marrakech, I am delighted that we have also met our fundraising goal of $3 billion (SDR 2.3 billion) for PRGT subsidy resources, which ensures that PRGT financing can continue to be provided at zero-interest rate. I would like to thank the membership for their generosity in helping us achieve this important milestone and for their unwavering commitment to support our most vulnerable members. What is even more remarkable about today’s milestone is that more than 40 contributors have delivered for these urgently needed subsidy resources – one-third of them from emerging market economies, including from here in Africa. Even countries that had previously benefited from IMF support are now stepping up and giving back in a remarkable show of solidarity.
“This broad-based show of support is a testament that, even in a more fragmented world, we can still come together to help our most vulnerable members. And it could not be more befitting that this show of solidarity culminates here in Africa, where, for the first time in 50 years, we gather for our Annual Meetings. Looking ahead, keeping the PRGT adequately resourced will require continued efforts. The strong demand for concessional financing combined with sharply higher interest rates will continue to increase the need for PRGT subsidy resources. The IMF is committed to making sure that the PRGT continues to provide strong support to low-income countries. Having completed this important stage of fundraising, we will now embark on a comprehensive Review of the Fund’s Concessional Facilities and Financing to ensure that the long-term financing capacity of the PRGT is placed on a sustainable footing. Low-income countries need an adequately resourced IMF to meet their rising needs as they grapple with global shocks and transformational challenges. I am confident the global community will step up yet again with the same commitment and solidarity.”
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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