Civil Society Groups Call for Probe into Nigeria’s $3.4 Billion IMF Loan Amid Rising Debt Concerns

Nine civil society organisations (CSOs) have called on the National Assembly to investigate the $3.4 billion loan received by the Federal Government from the International Monetary Fund (IMF) during the COVID-19 pandemic in 2020. The CSOs expressed concern over the government’s excessive borrowing and the lack of concrete evidence on how the loans were utilized.

Led by the Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, the CSOs raised alarm over Nigeria’s public debt, which has escalated to N87.9 trillion, equivalent to $114.3 billion. They highlighted the need for accountability and transparency in the management of borrowed funds, urging the government to provide a detailed account of savings from the removal of fuel subsidy since May 2023.

Rafsanjani emphasized the impact of the escalating debt burden on Nigerian citizens, warning that failure to address the issue could lead to an additional 23 million Nigerians living in poverty and 80 million working-age citizens without full-time jobs by 2030. He called on the National Assembly to investigate the movement and spending of loans received by the Federal Government, including the $3.4 billion loan from the IMF.

The CSOs also urged the government to cease borrowing for recurrent expenditure, such as personnel and overheads, and to focus on capital expenditure that contributes to economic growth, wealth creation, and development. Among the CSOs represented at the media briefing were Centre for Democracy and Development (CDD), International Budget Partnership, Paradigm Leadership Support Initiative, Oxfam, Social Action, Christian Aid, and ActionAid.

The call for an investigation into the IMF loan and the government’s borrowing practices comes amid growing concerns over Nigeria’s rising debt profile and the need for fiscal responsibility to ensure sustainable economic growth and development.

Daily Trust