IMF Warns Nigeria, Others to Curb Dirty Money Inflows Amid Rising Debt and Weak Governance
The International Monetary Fund (IMF) has issued a fresh warning to Nigeria and other emerging economies to intensify efforts against the inflow of illicit funds, often called “dirty money,” which it says undermines financial stability, public trust, and global reputation. IMF Managing Director Kristalina Georgieva delivered the message at a Civil Society Town Hall during the ongoing IMF–World Bank Annual Meetings in Washington, D.C., stressing that strong governance and transparency are now central to sustainable growth.
Georgieva noted that although the global economy has shown “remarkable resilience” amid multiple shocks, many developing nations remain exposed due to weak institutions, growing debt burdens, and limited fiscal transparency. She emphasized that illicit financial flows continue to threaten fragile economies, warning that “five to ten years ago, this issue was underestimated; today, it’s central to our analysis and policy advice.”
To address these vulnerabilities, the IMF has introduced a new Anti–Money-Laundering and Combating the Financing of Terrorism (AML/CFT) Strategy, which integrates governance diagnostics into its economic assessments and lending programs. This initiative enables countries to identify institutional weaknesses early and strengthen financial oversight before they spiral into crises. “Robust anti–money-laundering frameworks are not optional—they are essential for attracting investment and maintaining fiscal credibility,” Georgieva said.
The IMF chief also urged African governments to work closely with civil society organizations to promote transparency in public financial management. According to her, these partnerships make reform efforts “more credible and effective,” as civil society groups often understand systemic flaws from the grassroots level. She clarified that the Fund’s governance diagnostic tools are preventive measures, not punitive audits, aimed at helping countries build resilience.
Georgieva acknowledged that while nations like Nigeria have seen slight improvements in debt ratios, these gains stem largely from limited access to borrowing rather than genuine fiscal discipline. She cautioned that without stronger institutions, credible debt management, and people-focused governance, public frustration could deepen. “We are seeing young people across the world lose faith in institutions. Governments must deliver transparent, inclusive policies or risk losing social cohesion,” she warned. The IMF reaffirmed its commitment to collaborate with the World Bank, G20, and other partners to strengthen debt restructuring, sustainable growth, and job creation across Africa’s young economies.
source: The sun