The International Monetary Fund, or the IMF, has laid out some of the main steps that Nigeria and other sub-Saharan African countries should take to avoid an economic crisis that could arise as a result of what it calls the “big funding squeeze” that is taking place throughout the world economy.
As a result of the current funding squeeze Nigeria and many frontier markets have been virtually shut out of the Eurobonds market since the spring of last year, those with marginal access receive the funds at a higher cost, according to Wenjie Chen, a deputy division chief at IMF.
She said that repayments on maturing bonds were also coming quickly this year and that for Nigeria, it was coming in June, which would further limit the ability to finance the country’s desperately needed infrastructure and social development.