The International Monetary Fund (IMF) is hesitant to grant debt cancellation to Nigeria and other African countries

The IMF said countries seeking debt cancellations should seek dialogue with individual creditor nations to fashion out the best options

IMF’s Africa representative, Abebe Selassie, urged African countries to work to minimize the impact of inflation in their respective countries

The International Monetary Fund (IMF) has dismissed the idea of total debt cancellation for Nigeria, Ghana, and other African countries. The IMF African Department Director, Abebe Selassie, said about 50% of total debts in African countries are domestic, making debt cancellations difficult.

The IMF African Director stated there is no magic wand to wave and get rid of debts, saying there should be country-specific discussions on debt rescheduling.

Selassie said debts will be handled based on discussions with creditor nations on the way out of the challenges.

The Nation reports that Selassia revealed that where there is no rise in private investment and consumption, it is expected to lift growth in many parts of Africa by 2024.

Per the IMF Chief, Africa was remarkably subdued, and inflation is gradually declining.

Per Selassia, inflation in Africa remains high, and monetary and fiscal policies should work together to control it, stating that too many countries struggle to maintain growth and have sustainable jobs.

In the last decade, the agency had loaned about $80 billion to African countries for emergency funding and Special Drawing Rights (SDR) allocations.

As of September 2023, IMF’s SDF to Nigeria is 2147.69 million; Special Drawing Rights (SDR): 3363.51 million; Quota (SDR): 2454.5 million.

In 2022, the IMF cautioned Nigeria and other developing countries against taking loans from China due to unfavorable loan conditions. African countries increase the tempo of debt cancellation Nigerian and other African countries are increasing their requests for debt cancellations within the G24 countries.

The G24 presented a series of proposals to the IMF and the World Bank at the ongoing IMF/World Bank meeting at Marakesh in Morocco.