Analysis on IMF Loan Conditions with more Detrimental Impact on the Economy: A Case Study of Nigeria

Abstract

Past studies have shown that nations that borrow money from the International Monetary Fund (IMF) have greater rates of poverty, unemployment, and inflation than countries that do not borrow from the IMF. This is despite the fact that the IMF claims that fostering economic development is one of its objectives. The IMF loans conditions that are shown to have the most detrimental impact on economies are the subject of this study, which focused, specifically on Nigeria. In order to obtain data for this research, primary data sources such as official documents, newspapers, journals, and other similar sources were utilized, and Neoliberal theory was employed as the theoretical foundation for the study. Our research showed that the IMF loan conditions of currency devaluation and subsidy removal negatively impacted not just Nigeria’s economy but also the nation’s overall standard of living. As a result, it was recommended that the government should make an effort to diversify the economy, modify its relations with international financial organizations like the IMF and the World Bank, and give the populace access to the necessary resources to improve their standard of living.