This study investigated the impact of International Monetary Fund (IMF) loan policy on the growth of the Nigerian economy, using secondary time series data covering the period 1986 to 2018.Data of the study variables International Monetary Fund loans (IMFL), total national savings and real gross domestic product were obtained from the Central Bank of Nigeria Statistical Bulletin and database of the Debt Management Office of Nigeria for the period covered. The statistical tools employed for data analysis include vector auto-regression (VAR) and unit root tests. The VAR result revealed ARCH effects of IMF loan conditionality on economic growth. The result suggests that IMF loan policy significantly and negatively affects economic growth in Nigeria. Given the findings of the study, it was recommended that the Nigerian Debt Management Office should put in place, sophisticated mechanisms aimed at monitoring the utilization of IMF loans as well as setting maximum benchmark of external borrowings that could be permitted on stipulated conditions. In addition, Federal Government of Nigerian, especially the responsible financial authorities such as the Federal Ministry of Finance and the Central Bank of Nigeria, should relentlessly pursue the process of diversification of the economy, as this will result in resilient and healthy economy, which will diminish the desire for IMF loans or other forms of external borrowings to the barest minimum.