The International Monetary Fund has warned that Nigeria and other developing nations are facing growing pressure from high debt payments, costly borrowing and reduced foreign financing. The combination is making it harder for many emerging and low-income economies to fund development and respond to economic shocks.

IMF Managing Director, Kristalina Georgieva said high interest rates in advanced economies have made it more expensive for poorer countries to borrow or refinance existing loans. At the same time, external financing available to many of these nations has declined, adding to the strain on government budgets.

She noted that higher debt-service costs could leave governments with less money for key areas such as infrastructure, healthcare and education.

A drop in official development assistance and reduced support from some creditors has further tightened the funding available to low-income countries.

Georgieva called for faster action to restore debt sustainability where burdens have become too heavy. She urged improvements in debt restructuring processes so that countries do not remain trapped in difficulty for long periods, and encouraged stronger domestic revenue collection and better debt management.

Global public debt is now approaching 100 per cent of world economic output and is expected to rise further. While the IMF projects global growth of about three per cent in 2026, the fund stressed that vulnerable developing countries still face serious risks and need credible plans to strengthen their public finances.

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