Impact of International Monetary Fund Debt Management Strategies on Nigeria’s Fiscal Stability

The persistent fiscal instability in Nigeria, characterized by rising debt levels, dwindling revenues, and recurrent budget deficits, has raised significant concerns about the country’s reliance on external financial institutions such as the International Monetary Fund (IMF). This reality necessitated the research study, which assesses the impact of IMF debt management strategies on Nigeria’s fiscal stability. The objective of the study is to examine whether the IMF’s strategies have contributed positively or negatively to Nigeria’s fiscal health, particularly in relation to debt sustainability, economic equity, and national autonomy. A mixed-methods approach was employed, involving the administration of structured questionnaire to selected officials, complemented by in-depth interviews. The data were analysed using simple percentage techniques to derive statistical insights, while the interviews were subjected to qualitative content analysis. The study adopted the Public Choice Theory, which offers a robust framework for understanding how policy decisions, often influenced by elite interests and international pressures, may diverge from the broader public good. Findings reveal that IMF debt management strategies in Nigeria are widely regarded as detrimental rather than beneficial, as they significantly undermine fiscal autonomy, exacerbate economic inequality, and hinder sustainable long-term growth. The study recommends that Nigeria should strengthen domestic revenue mobilization mechanisms, especially through widening the tax base and improving tax administration, and secondly, prioritize the development of homegrown fiscal policies that align with national development goals rather than externally-imposed frameworks.