The International Monetary Fund (IMF) has stated that Nigeria is plunging into deeper financial crisis.
IMF stated this on Monday, February 8, adding that only a fundamental policy reset can salvage the impending economic crisis.
According to IMF’s estimation, Nigeria spent N92 of every N100 earned in 2020 servicing its fast-growing debt stock.
A breakdown of Nigeria’s external debt by the Debt Management Office (DMO) shows the country is owing $31.98 billion as of September 2020.
More than half of the debt is owed by multilateral institutions such as the IMF, World Bank and the African Development Bank (AfDB).
The IMF said the coronavirus pandemic has greatly affected Nigeria’s economy, adding that the sharp drop in oil prices led to the contraction of the nation’s GDP by 3.2%.
The inflation also rose while the unemployment rate reached 27%.
This has worsened the socio-economic conditions of Nigerians, despite the $3.5 billion loan the IMF gave Nigeria to cushion the effects of COVID-19 pandemic in April 2020.
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