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IMF temporary raise access limits under poverty reduction, growth trust to support low income countries

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The Executive Board of the International Monetary Fund (IMF) said that it has agreed on to temporarily raise the poverty reduction growth fund PRGT, normal annual access limit to 200 per cent of quota and the normal cumulative access limit to 600 per cent of quota until end-2024. In a statement issued in Washington DC it said “these changes are intended to better support the Fund’s low-income members in a particularly challenging and uncertain global economic environment. The Poverty Reduction and Growth Trust (PRGT) is the Fund’s concessional lending arm (currently at zero percent interest rates). In March 2023, the IMF Executive Board decided that an interim review of the PRGT access limits should be carried out once substantial progress with the PRGT first stage fundraising target for subsidy resources of SDR 2.3 billion was met. This target was met in October 2023 thanks to the generosity of over 40 countries, paving the way for the interim review.

“IMF’s concessional lending under the PRGT is subject to normal annual and cumulative access limits. The PRGT access limits were last reviewed in July 2021, setting the normal annual and cumulative access limits at 145 and 435 percent of quota respectively, aligned with then prevailing General Resources Account (GRA) access limits. Since then, the GRA access limits have been temporarily raised to 200 / 600 in March 2023. The temporary increase in PRGT access limits will allow more flexibility in Fund’s support to countries with large balance of payments needs and facilitate their implementation of strong economic programs that help maintain or restore sustainable economic positions and inclusive growth. The forthcoming Review of the Fund’s Concessional Facilities and Financing, expected to be completed in the Fall of 2024, will cover both the review of facilities, including access limits, and PRGT financing, including to ensure the long-term financial sustainability of the trust.

“Executive Directors welcomed reaching the milestone of SDR 2.3 billion first‑stage target for PRGT subsidy resources agreed in 2021. The Board approved the proposal to raise, on a temporary basis until end‑2024, the annual and cumulative access limits under the Poverty Reduction and Growth Trust (PRGT), as well as the per arrangement cap on the PRGT resources under the blending policy until end‑2024. Directors noted that low‑income countries (LICs) are facing persistent headwinds and an uncertain global economic environment, while having diminished policy buffers and facing tight financing conditions. In this context, LICs are likely to have an increased need to access the Fund’s concessional financial support as they undertake the necessary macroeconomic adjustments. Against this background, most Directors supported a temporary increase in the annual access limit under the PRGT from 145 percent of quota to 200 percent of quota and a temporary increase in the cumulative access limit from 435 percent of quota to 600 percent of quota until end‑2024. Some Directors considered that the alignment of PRGT and GRA access limits is important for evenhanded treatment of members. 

“A few other Directors stressed that the PRGT and GRA are separate and access limits do not need to align. A few Directors pointed out that many of the LICs with a high need for PRGT resources can already access the PRGT above normal access limits subject to safeguards. A number of Directors stressed the importance of maintaining the catalytic role of Fund financing. Most Directors also agreed that PRGT access norms, which provide general guidance on access to PRGT facilities, will be raised from 145 percent of quota to 200 percent of quota (for any three‑year Extended Credit Facility arrangement, prorated for longer duration arrangements; for any 18‑month Stand‑by Credit Facility arrangement, prorated for different arrangement duration)—although a few Directors felt that this particular proposal had not been sufficiently justified. Most Directors also concurred that the per arrangement cap on the PRGT resources under the blending policy will also be raised from 145 percent of quota to 200 percent of quota until end‑2024. In this context, Directors noted that access limits and norms are neither ceilings nor determinants of program access. Rather, access for individual cases should be carefully evaluated on their merits according to standard criteria, including the strength of policies under the program, the level of access sought, and debt sustainability.

“Directors acknowledged that the temporary modifications of the PRGT access limits, norms, and the PRGT access cap for blended arrangements are likely to increase the volume of PRGT financing, and many Directors stressed that PRGT funding remains a concern that needs to be addressed comprehensively to reach a self‑sustained PRGT. Against this background, Directors highlighted the critical importance of the comprehensive Review of the Fund’s Concessional Facilities and Financing planned for 2024. In this context, Directors provided various suggestions to guide staff’s review and ensure a thorough analysis and a comprehensive evaluation of options. Most Directors noted that the increase in access limits raises the thresholds for triggering the application of higher scrutiny under the PRGT exceptional access policy and welcomed staff proposals to keep unchanged the triggers for enhanced safeguards and for high access procedures to mitigate risks. They concurred with the proposed transitional rules in case access limits were to revert to lower levels after 2024. Directors agreed that strong safeguards will help in mitigating risks arising from the temporary access limits increase in a context of pressure on PRGT resources and elevated debt vulnerabilities among LICs.

“Directors discussed staff’s preliminary considerations on extending the temporarily higher GRA access limits through end‑2024 to allow sufficient time for staff to develop a comprehensive review of access limits that could become effective together with any quota increase that may be approved by the Board of Governors under the Sixteenth General Review of Quotas. Most Directors looked forward to staff’s proposal early next year underpinned by a thorough analysis. Some Directors stressed that an extension of the temporarily higher GRA access limits should be assessed on its own merits”.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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December 5, 2025

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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.

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FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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December 4, 2025

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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.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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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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