By John Umeh
Nigeria has dismissed the possibility of seeking a fresh bailout from the International Monetary Fund, reaffirming confidence in ongoing economic reforms despite mounting global pressures and rising fuel costs.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the declaration during the 2026 Spring Meetings of the World Bank and IMF in Washington DC.
Edun stressed that the Federal Government remains committed to its homegrown recovery strategy, even as geopolitical tensions in the Middle East continue to push Premium Motor Spirit (PMS) prices above ₦1,300 per litre.
According to him, Nigeria’s economic direction is firmly anchored on market-driven reforms rather than external financial assistance.
“The government is staying the course with internally driven policies designed to strengthen economic fundamentals and build resilience,” Edun said.
Tinubu Will Not Reverse Reforms
Nigeria’s Ambassador and Permanent Representative to the United Nations, Jimoh Ibrahim, also assured global stakeholders that President Bola Ahmed Tinubu would not abandon the administration’s reform agenda despite current economic hardship.
Ibrahim described the reforms as necessary sacrifices that would eventually deliver long-term prosperity for Nigerians.
He also highlighted global tensions involving Iran and the strategic Strait of Hormuz as major threats to global economic stability.
According to him, disruptions in the waterway could significantly affect global energy markets, noting that more than 25 percent of global seaborne oil and about 20 percent of liquefied natural gas pass through the corridor.
He warned that countries such as China, India, Japan, and South Korea could face major economic disruptions if tensions escalate.
Economy Shows Resilience in First Quarter
Economists, however, say Nigeria’s economy demonstrated resilience in the first quarter of 2026 despite persistent structural challenges.
Speaking at the European Business Chamber Nigeria CEO Session in Lagos, Chief Economist at PwC Nigeria, Olusegun Zaccheaus, noted that the economy recorded modest growth amid global and domestic shocks.
He said while monetary conditions appear stable, consumers remain under pressure and growth across sectors remains uneven, with oil and gas outperforming manufacturing.
Zaccheaus also identified insecurity as a major concern affecting Nigeria’s investment climate and called for reforms to boost productivity, particularly in the power sector.
He projected stronger economic performance in 2026 compared to 2025, urging policy consistency and improved security to attract investments.
Credit Conditions Improving
Chief Economist at First Bank Group, Chinwe Egwim, said Nigeria’s macroeconomic environment is gradually stabilising, although global economic conditions continue to influence local outcomes.
She noted that higher oil prices have increased government revenue but also placed financial strain on households and businesses.
Egwim added that liquidity in the financial system has improved, boosting credit availability, although many small businesses still face challenges accessing loans due to documentation and structuring requirements.
Growing Investor Interest
General Manager of the European Business Chamber Nigeria, Chigozie Okwara, said reforms across taxation and economic policy are encouraging stronger collaboration with European investors.
He noted that ongoing partnerships aim to transfer technology, improve competitiveness, and expand cross-border investments.
Meanwhile, the European Bank for Reconstruction and Development confirmed Nigeria’s growing appeal to global investors.
Head of Nigeria operations at the bank, Hamza Al-Assad, said Nigeria’s inclusion in the institution’s expansion into sub-Saharan Africa reflects its economic potential.
He added that the bank will focus on financing viable projects while helping businesses align with international standards.
Outlook Remains Cautiously Optimistic
Despite inflationary pressures, insecurity, and uneven growth, analysts believe Nigeria’s economic outlook remains cautiously positive.
With reforms continuing and investor confidence gradually improving, the government insists that staying on its current path — rather than seeking IMF support — will deliver sustainable economic growth in the long run.
