Nigeria has been forewarned by the International Monetary Fund to prepare for a substantial decrease in foreign loans as the world economy continues to undergo new shocks and contractions.
Chen claims that the economies of Sub-Saharan African countries like Nigeria have continued to be strained by high borrowing costs, high interest rates, and the rising value of the dollar. She pointed out that loans from China and other developed economies to Africa have decreased as a result of the unpredictability surrounding the world economy.
Chen noted that the region’s public debt ratio has risen over the previous ten years and warned that Nigeria and the rest of SSA’s debt vulnerabilities would continue to rise. But added that the international lender is still confident in its earlier projection that Nigeria’s economy will grow by 3.2 per cent this year.
Ari further stated that for Nigeria’s economy to react positively to this funding squeeze, the private sector needs good macroeconomic policies to thrive.