ActionAid criticises IMF for worsening Nigeria’s debt crisis
Nigeria is facing a severe debt crisis, with more national revenue spent on external debt payments than on healthcare and education combined, according to a new report by ActionAid International and ActionAid Nigeria. The report accuses the International Monetary Fund (IMF) of pushing policies that undermine social spending and worsen economic hardship. It highlights that IMF advice has not addressed the impact of debt servicing on essential services and criticises the lack of support for increasing public sector wages. Andrew Mamedu, Country Director of ActionAid Nigeria, called out the IMF for double standards and regressive tax recommendations.
What we know
- Nigeria spends 20.1% of its national revenue on external debt payments, compared to 4.06% on health and 4.40% on education.
- The report claims the IMF failed to connect debt servicing to its effects on health and education funding.
- The IMF recommended removing Nigeria’s fuel subsidy but did not ensure adequate support for vulnerable households.
- Nigeria’s public sector wage bill has been frozen at 1.9% of GDP for six years, the lowest among the 11 countries reviewed.
- The IMF advised Nigeria to increase its Value Added Tax from 7.5% to 15% by 2026 and raise excise duties on tobacco and alcohol, measures described as regressive by ActionAid.
