Nigeria Missing as Egypt, Kenya, Others Top African Countries With Highest Debt to IMF in 2024

• When African nations accumulate significant economic debt, they are frequently forced to enact strict economic reforms
• Concern has grown over the massive debts that several African nations owe the IMF in the form of support
• The list of African countries owing the biggest debt to IMF includes Egypt, Kenya, Angola and others

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

African countries are often compelled to implement stringent economic changes known as Structural Adjustment Programs (SAPs) when they accrue substantial debt with the IMF.

As a result of this, the International Monetary Fund's (IMF) presence in Africa has long been contentious, raising the question of whether borrowing money from the international financier is more detrimental than helpful.

The enormous debts that many African countries owe the IMF have become a cause for concern, despite the fact that the organization offers financial support to countries experiencing economic difficulties.

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Despite the fact that these loans are meant to stabilize economies, they frequently lead to a number of problems that could hinder growth and depress the economy.

Additionally, a vicious cycle of borrowing and repaying is frequently created by high IMF debt levels.

Large sums of government funds are usually diverted from profitable investments to debt repayment in order to service these debts.

As a result, there may be less fiscal room to react to outside shocks like changes in the price of commodities, natural disasters, or international financial crises.

Business Insider reported that countries become more vulnerable and economic troubles worsen if they are unable to set aside money to buffer such hits.

Sengal dropped out of the top 10 list in place of Morocco, and Ghana is now one slot lower than Cote d'Ivoire since this list was last updated.

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Here are the 10 African countries with the highest total IMF credit outstanding at the end of 2024 as updated on the 23rd of December.

Nigeria services some loans collected

The Nigerian government spent more than $2.24 billion to settle matured external debts between January and June 2024.

Legit.ng has analysed the country's recent loan repayments using the data obtained from the Debt Management Office (DMO).

A breakdown of figures showed that in 2024's first quarter (January to March), the Nigerian government spent $1.12 billion to service debts owed to various foreign entities.

Source: Legit.ng