Economy
IMF calls for support of poor nations on poverty reduction
The IMF’s managing director on Wednesday called on the international community to support the world’s poorest countries by helping to close a funding gap facing the Poverty Reduction Growth Trust, the Fund’s main instrument to support low-income countries with interest-free loans. Speaking at the start of a session on concessional finance, Kristalina Georgieva said that low-income countries had been impacted severely by multiple economic shocks in recent years and their per-capita income is expected to rise at the slowest pace since 1990, hindering their aspirations to catch up with richer economies.“This puts them in danger of further divergence unless we act,” she said.Since the start of the pandemic, the IMF has provided $24 billion in support through the PRGT, alleviating people’s suffering and preventing instability from spreading beyond borders. But higher international interest rates have raised the cost of borrowing and increased the funding shortfall.“We have to work together to close this gap and I have no doubt that we will be successful,” Georgieva said , adding that every dollar committed in PRGT subsidies translates into $5 of interest-free lending.
She said “this is an important event. It is dedicated to the needs of a part of our membership that is particularly severely impacted by the multiple shocks we have been living in over the last years. In March 2020, when the W.H.O. announced the start of the pandemic, at that time, all countries were faced with tremendous uncertainty, which was particularly dramatic for low-income countries. Just a week after W.H.O. announced the pandemic, the IMF approved the first emergency financing for the Kyrgyz Republic and disbursed it on the very same day. Since then, we have stepped up support for low-income countries. Because without this support, not only their people would have experienced tremendous hardship, but that hardship would have created instability affecting way beyond their borders. I want to focus on the challenge these countries face. We are no more at the time of providing emergency financing. Instead, we have very strong demand for upper credit tranche programs to help these countries build fundamentals and create opportunities for growth and employment for their people.
We know that at a time when the global economy is still experiencing a multiplicity of challenges from slow growth and high inflation. For these countries, these challenges translate into holding them back in their aspiration to catch up with the better offs. Their per capita income growth for 2023-24 is projected to 2.8 percent. This is the lowest per capita growth since 1990, and that puts them in danger for further divergence unless we act. And I think you all have seen how important the presence of the IMF is, especially through upper credit tranche programs that build sound fundamentals and institutions in countries so they can improve their prospects for development. How important it is to bring debt resolution with IMF programs being at the heart of negotiations. And how important we are in mobilising financing from other partners. I want to recognise the presence of the World Bank Group. We have worked extremely hard to bring our institutions’ strength everywhere, but especially in developing countries.
“Clearly, we have a task in front of us to make the financial capacity of the IMF to support low-income countries as strong as the times require. Where are we? We have quadrupled financing for PRGT-eligible countries because of the needs of these countries going up. That means that we have provided $24 billion of financing since the start of the pandemic. Part in emergency, but primarily in program financing. And we have invested our effort to support countries to pursue successful debt resolution. I am very pleased to have Chad present as one country where we managed to get the outcome of the work of the common framework in place. More need that support. In addition to increase in demand, we are now experiencing higher interest rates. That makes bringing down the cost of lending to low-income countries harder. And as a result, the resource gap for the PRGT has grown.
“We have to work together to close this gap. And I have no doubt we will be successful, especially in light of the fact that come October, we will be hosted by Morocco for our annual meetings. For the first time in 50 years, the Annual Meetings of the IMF and the World Bank will go to Africa. And it is so important that we go there demonstrating that we are able to stand by our poorest members, especially by our African members. As an urgent first step as an urgent first step, what I call for is to close the subsidy gap by providing pledges of $1.6 billion, and we need $4.7 billion to close the loan resource gap. Remember, each $1 of subsidy mobilizes $5 of zero interest loans, and that is what countries rely on for us to be able to support them.
“What this means is that by October, by closing this gap, we can restore access to concessional financing for PRGT-eligible countries at par with access for our GRA-eligible countries. That is meaningful on its own from a financial standpoint. It is also meaningful in terms of equality of treatment and the sense that we are one community – all our members. We also know that more will be needed. We have a duty to make the PRGT whole and place its longer term financing on a sustainable footing. This means building consensus – by the Annual Meetings in Marrakech – on a phased, burden-shared strategy to replenish the PRGT so it can provide adequate support to our low-income members for the longer term. So, I suggest that we launch this road to Marrakesh today. To help us see how we travel this road, we asked two leaders to provide us with some thoughts around what it means and why it matters”.
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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