International Monetary Fund Stabilization Programme and External Sector Development in Nigeria

The impact off the International Monetary Fund (IMF) stabilization programme has been a subject of great controversies. This study therefore investigated policy recommendations contained in IMF Programme on development Nigeria’s external sector. In specific terms, examined fiscal deficit, exchange rate, foreign direct investment (FDI), degree trade openness, interest rate and bank credit to domestic economy two indicators sector namely; balance payments (BOPs) reserves. A variety analystical techniques including Phillips-Perron unit root test, autoregressive distributed lag (ARDL) model, error correction model (ECM) Granger causality test was applied annual time-series data from 1986 2021. findings indicated that deficit significant negative while have insignificant BOPs. Also, openness positive BOPs FDI performance. Similarly, reserves investment, line with recommendations, recommended Nigerian government should reduce size its deficit; encourage inflow open up international trade. However, against managed free floating be adopted lowered. It is also private expanded.