The International Monetary Fund has urged Nigeria and other emerging economies to strengthen governance diagnostics and curb illicit financial flows to boost resilience and rebuild public trust in state institutions.
IMF Managing Director Kristalina Georgieva made the call during a Civil Society Town Hall at the ongoing IMF-World Bank Annual Meetings in Washington, D.C.
She noted that although the global economy has demonstrated strong resilience amid multiple shocks, many developing nations remain vulnerable due to weak governance, rising debt, and limited fiscal transparency.
Georgieva emphasized that robust governance systems and effective anti–money laundering frameworks are essential for sustaining growth and attracting investment, particularly in countries grappling with high public debt and financial leakages.
“Illicit financial flows, what we call dirty money, undermine stability and public trust. Five to ten years ago, this was underestimated; today, it is central to our analysis and policy advice.
“We now integrate anti-money-laundering and governance diagnostics into our annual Article IV reviews and lending programmes, so countries can identify and fix institutional weaknesses before they become crises,” she said.
Georgieva revealed that the IMF has introduced a new Anti–Money Laundering and Combating the Financing of Terrorism Strategy, which will be implemented more broadly across member countries.
She explained that the initiative aims to trace illicit financial flows, enhance oversight of financial institutions, and promote greater debt transparency.
The IMF chief also called on African governments to deepen collaboration with civil society to strengthen transparency and accountability in public financial management.
“The governance diagnostic tool is not an audit; it is a preventive measure. We encourage governments to collaborate with civil society organisations that often know the system’s weaknesses best. Working together makes our efforts more credible and effective,” she noted.
She further observed that although Nigeria and several other low-income countries have recorded slight declines in debt ratios, the improvement was largely driven by restricted access to financing rather than genuine gains in debt sustainability.
This, she emphasized, highlights the need for stronger institutional frameworks and credible debt-management strategies.
According to Georgieva, inclusive governance is now just as vital as sound macroeconomic policy in achieving lasting stability.
“We are seeing young people across countries take to the streets because they have lost faith in institutions. Governments must deliver transparent, people-focused policies or risk losing social cohesion,” she added.
