IMF expresses confidence in Nigeria’s economy
...As Buhari assures on economy despite drop in oil price
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NIGERIA: THE International Monetary Fund (IMF) has expressed confidence in the ability of the President Muhammadu Buhari-led administration to sustain the country’s economy despite the drop in oil prices.
The Managing Director of IMF, Christine Lagarde, after meeting Buhari in Abuja on Tuesday, said she was impressed with the All Progressive Congress administration’s plans to tackle the challenge.
“Just met President Buhari of Nigeria,” she said on her twitter, adding: “Impressed with government’s response to challenge of sustained low oil prices.”
Earlier, she told journalists in Abuja that her visit to the country was to promote government’s fiscal discipline and favourable monetary policies.
The IMF boss said she had excellent talks with the President on the myriad of challenges facing the country due to the sharp drop in the price of oil in the international market.
She said: “Let me make it clear that I’m not here nor is my team in this country to negotiate a loan with conditionalities.”
“We are not into programme negotiations and frankly at this point in time, given the determination, resilience displayed by the President and his team, I don’t see why an IMF programme will be needed,” she said.
Lagarde stressed: “So, of course, discipline is going to be needed, of course, implementation is going to be key for the objectives and the ambitions to serve the country well, in order for it to be actually sustainable.’’
She rubbished the belief that the Fund’s programs were anti-people, saying that instead the IMF policies and programmes were meant to help governments with quality policy advice, technical assistance and capacity building.
No fewer than 150 out of the 188 member-countries of the IMF, according to her, had so far benefited from the Fund’s technical assistance and capacity building.
“If I may say, I think that you have slightly outdated idea of the IMF,” she said, adding: “Certainly, the last four and a half years, since I have been managing director of this institution, this is not the recipes we adopted and this is certainly not the feedback I have received from the countries that we have worked with.”
Lagarde added: “I just want to point out that we are majorly involved in three kinds of activities. The first one, which is the most traditional one, is under which we give policy advice to our members, we have currently 188 countries that are under this institution and it is our duty and accountability to them to review their economy every year to give them report about their economy.
“We don’t push them, we don’t do things necessarily to please them; we say things as we see them. The second activity, which is the fastest growing one in the institution, is technical assistance and capacity building, and there is plenty of that that is available to all the countries of the world.”
“It gives us pride to see that about 150 countries have had the benefit of technical assistance and capacity building,’’ she stressed.
Lagarde, who urged the country to come up with a strong tax department, efficient debt management and customs authority to achieve a strong economy for the country, praised Buhari’s administration on its determination to fight corruption and ensure transparency and accountability at all levels.
While assuring that the IMF would be willing to assist the government in closing revenue leakages, trace stolen funds and restructure the tax system, she stressed that the country had all the potentials to overcome the current economic challenges without seeking financial help from the IMF.
During the close-door discussion, Buhari told Lagarde that his administration would look inwards and enforce regulations to stamp out financial leakages as part of measures to alleviate the effect of dwindling oil prices on the nation.
The President, in a statement issued by his Special Adviser (Media and Publicity), Mr. Femi Adesina, further told his guest and his team that his government would adopt global best practices in generating additional income.
In addition, the government, Buhari said, would ensure enforcement of greater discipline, probity and accountability in all revenue generating agencies at the Federal Government level.
Said Buhari: “We have just come out of budget discussions after many weeks of taking into consideration the many needs of the country, and the downturn of the economy with falling oil prices and the negative economic forecasts.
“We are working very hard and with the budget as our way forward, we will do our best to ensure that our country survives the current economic downturn,” Buhari said, adding further: “We have also told all heads of Ministries, Departments and Agencies (MDAs) of government that are on our watch, they will fully account for all funds that get into their coffers.”
He stated that government was reviewing its operational costs and had directed all the MDAs to cut down on their overhead costs, just as he told Lagarde that his government would welcome the IMF’s technical support and expertise on its plans to diversify the economy.
- By Femi Shodunke
