Friday, March 5

Tag: IMF

Dangote Refinery Can Bail Nigeria Out Of Economic Recession – IMF
Business

Dangote Refinery Can Bail Nigeria Out Of Economic Recession – IMF

The International Monetary Fund, IMF, the global financial watchdog, is projecting that Nigeria’s Dangote Refinery would provide an elixir for the country’s economy when it is completed and start production by 2022. In its latest report on Nigeria’s economy, the Fund raised the hope that the start of production from the refinery, solely owned by Africa’s richest man, Aliko Dangote could help Nigeria improve its Current Account balance. It said Dangote Refinery has “the potential to catalyze more domestic crude oil production and boost GDP growth.” “On the upside, the Dangote refinery, if commencing production in 2022 as planned, could meet the full demand for domestic consumption of refined petroleum products—which are almost all imported at present—thereby improving the CA ba...
Despite Loans, Nigeria’s Socio-Economic Conditions Deteriorated ― IMF
News

Despite Loans, Nigeria’s Socio-Economic Conditions Deteriorated ― IMF

International Monetary Fund (IMF) has concluded that despite the $3.5 billion loan it gave Nigeria to cushion the effects of COVID-19 pandemic in April 2020, socio-economic conditions have worsened. In a report published, on Monday, on the Article IV Consultation for 2020, which ended on January 27, the Board noted that “Nigeria’s economy has been hit hard by the COVID-19 pandemic. Following a sharp drop in oil prices and capital outflows, real GDP is estimated to have contracted by 3.2 per cent in 2020 amidst the pandemic-related lockdown. “In April 2020, Nigeria received IMF emergency financial assistance of $3.5 billion under the Rapid Financing Instrument to help cushion the impact of the pandemic. In a report published, on Monday, on the Article IV Consultation for 2020, ...
IMF Credits CBN’s Account With $3.4bn Emergency Loan
News

IMF Credits CBN’s Account With $3.4bn Emergency Loan

Nigeria has received the $3.4 billion emergency loan from the International Monetary Fund (IMF). IMF Managing Director, Ms Kristalina Georgieva, confirmed to CNBC Africa in an interview that the $3.4 billion loan had been credited to the account of the Central Bank of Nigeria (CBN). The funds had been approved under the Rapid Financing Instrument by the Executive Board of the IMF on April 28, ‎to address challenges arising from the economic impact of the COVID -19 pandemic the country. Ms Georgieva also called on the Federal Government of Nigeria to be transparent and account for every single kobo of the fund. ‎The federal government had assured that it will publicise all disbursements from the funds, adding that there are plans to conduct an independent audit of all emerge...
Nigerians Will Pay Higher Electricity Tariffs – FG Promises IMF
Politics

Nigerians Will Pay Higher Electricity Tariffs – FG Promises IMF

Nigerians will pay much higher tariff for power in 2021, going by promises made by the Federal Government to the International Monetary Fund while seeking the $3.4bn emergency financial assistance recently approved for Nigeria. The Executive Board of the IMF approved the Rapid Financing Instrument, which the Federal Government plans to use to address the economic impact of the COVID-19 pandemic in the country, on April 28. A Letter of Intent, jointly signed by the Finance Minister, Zainab Ahmed, and the Governor of Central Bank of Nigeria, Godwin Emefiele, and addressed to the IMF Managing Director, Kristalina Georgieva, indicated that the Federal Government made a number of promises to the fund in order to secure the financial assistance. One of the promises, or commitments, whic...
Buhari Begs IMF, World Bank To Cancel Nigeria’s Debts
Politics

Buhari Begs IMF, World Bank To Cancel Nigeria’s Debts

President Muhammadu Buhari has urged international financial institutions to assist member states in cushioning the negative impact of the pandemic in the spirit of solidarity. President Buhari said the assistance includes extending concessional loans, technical support, lowering of tariff on medical equipment and consumables, sharing of expertise in case management, adopting open trade policies, as well as outright debt cancellation. Already, countries ravaged by the COVID-19 pandemic have been seeking loans from international financial institutions like the World Bank and International Monetary Fund (IMF) among others. “Within the spirit of South-South cooperation, we must also assist one another, particularly the less developed and less endowed member states with technical,...
Fuel Subsidy Will Not Return, FG Assures IMF
Politics

Fuel Subsidy Will Not Return, FG Assures IMF

The Federal Government has pledged that it will ensure that fuel subsidy, which was recently removed, does not re-emerge. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, and the Central Bank of Nigeria Governor, Mr Godwin Emefiele, made the pledge in a letter to the Managing Director of the International Monetary Fund, Mrs Kristalina Georgieva. The sharp drop in crude oil prices on the back of the spread of coronavirus saw the landing cost of petrol hitting a record low, wiping off subsidy on the product. The pump price of petrol, which is still being regulated by the government, was reduced to N125 per litre from N145 per litre on March 18, 2020. The Petroleum Products Pricing Regulatory Agency further announced on March 31 a price band of N123.50-...
Nigeria To Repay IMF $3.4bn In 5 Years
News

Nigeria To Repay IMF $3.4bn In 5 Years

A day after the International Monetary Fund (IMF) granted Nigeria’s request for a $3.4 billion emergency fund, the federal government has said that it is a flexible loan, which will be repaid in five years at one per cent interest. Prior to the new twist, Nigerians were inundated with reports that the money was a drawdown on Nigeria’s savings with the IMF without any conditions attached. But yesterday, the government admitted that the Rapid Financing Instrument (RFI) was approved for the country on Tuesday, with strings attached. Speaking on a Nigerian Television Authority (NTA) programme, which LEADERSHIP monitored in Abuja yesterday, the minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, explained that the $3.4 billion facility was granted at one per cent inte...
IMF Lists Unpopular Policies CBN Must Reverse
News

IMF Lists Unpopular Policies CBN Must Reverse

The IMF wants the CBN to end some of its harshest policies including lifting the forex ban on 41 items. The International Monetary Fund, IMF on Tuesday approved a sum of $3.4 billion via a Rapid Financial Instrument to Nigeria. The loans come at a period when countries across the world are battling with the Covid-19 pandemic and the crash in crude oil prices. While the loans do not necessarily come with strings, the IMF did reveal in its press release acknowledging that Nigeria was on the path to unifying its exchange rata and moving towards a flexible exchange rate regime. As Nigerians get acquainted with the terms of the deal, the IMF released more reports shedding more light into what the country might expect to happen in the coming weeks and month should they have their way. O...
Nigeria To Lose Over $26 Billion From Oil Exports – IMF
Politics

Nigeria To Lose Over $26 Billion From Oil Exports – IMF

The International Monetary Fund (IMF) has projected that the present global health crisis could make Nigeria lose more than $26 billion from crude oil sales. In a statement issued on Thursday night, the international lender also said it expects the country’s economy to contract by about 3.4 percent in 2020, a 6-percentage point drop compared to pre-COVID-19 projections. Nigeria, Africa’s largest economy, has crude oil as its main export commodity, representing around 90 percent of its exports. Since prices of the commodity crashed few months ago, the country has recorded shortfall in revenue and few weeks ago, Nigerian cargoes carrying oil were looking for buyers. “The sharp fall in international oil prices, together with reduced global demand for oil, is worsening the coun...
IMF May Approve Nigeria’s $3.4 Billion Loan Today
Politics

IMF May Approve Nigeria’s $3.4 Billion Loan Today

There are indications that the Executive Board of the International Monetary Fund may approve the $ 3 . 4bn loan sought by Nigeria on Tuesday ( today ) . Although the Minister of Finance , Budget and National Planning, Zainab Ahmed , had on April 6 , while announcing that Nigeria had applied for the loan , said the funds were expected within six to 12 weeks , Reuters and Bloomberg reported that the IMF would meet over the request today . The reports quoted unofficial sources in the IMF. If approved, the loan would be among the largest allocations by the IMF to an African country in response to the COVID - 19 pandemic . It is expected that the IMF Executive Board would approve the loan having already approved similar requests for several countries . According to the IMF, about 102 coun...
Yemi Osinbajo Holds Meeting With World Bank, IMF Representatives
Politics

Yemi Osinbajo Holds Meeting With World Bank, IMF Representatives

As the novel Corona Virus Pandemic continues to affect the economies of nations across the globe, the Vice President of Nigeria, Prof. Yemi Osinbajo, SAN, has left no stone unturned to ensure that the black most populous country, Nigeria, sustains its economy. Osinbajo on Tuesday, held meetings via video conferencing with representatives of the World bank as well as the International Monetary Fund over its possible collaboration with President Buhari's Forthcoming Additional Economic Stimulus Packages. It could be recalled that a Seven-Man Economic Sustainability Committee (ESC) headed by Vice President Yemi Osinbajo, SAN, was set up by President Muhammadu Buhari as a response to the recent challenges in the economic front resulting from the fall in the prices of oil in the internat...
Nigeria Heading Into Worst Recession In 30 Years –IMF
News

Nigeria Heading Into Worst Recession In 30 Years –IMF

The International Monetary Fund on Tuesday said that Nigeria could be heading for its worst recession in three decades. The economic downturn is one of the effects of the Coronavirus pandemic predicted by experts around the world. According to the IMF, Nigeria’s economy will drop by 3.4 per cent in 2020 as a result of the COVID-19 pandemic. The international organisation made the projection in its April 2020 World Economic Outlook report released on Tuesday in Washington, United States. IMF Chief Economist and Director of Research Department, Gita Gopinath, said, “For the first time since the Great Depression, both the advanced economies and emerging and developing economies are in a recession. “For 2020, growth in advanced economies is projected at -6 per cent. Emerging...
IMF Grants Debt Relief To 25 Countries
News

IMF Grants Debt Relief To 25 Countries

Kristalina Georgieva, Managing Director of the IMF, made this known in a statement issued on Monday. “Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic,” the statement said. “This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.” The IMF said that CCRT can currently provide about US$500 million in grant-based debt service relief, incl...
Ngozi Okonjo-Iweala Gets New IMF Appointment
Politics

Ngozi Okonjo-Iweala Gets New IMF Appointment

Nigeria’s former finance minister, Ngozi Okonjo-Iweala, was on Friday named a member of the External Advisory Group constituted by the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. The group of prominent individuals from around the world are to serve as the IMF chief’s special advisers that would provide insights to enhance the fund’s ability to serve its membership. They consist mainly of high-level technocrats and policy experts with private sector experience. The new external advisory group, inaugurated on Friday in Washington DC, is to also provide perspectives from around the globe on key developments and policy issues. The issues include responses to the exceptional challenges the world now faces due to the novel coronavirus and its...
Nigeria To Borrow $6.9 Billion From World Bank, IMF, AFDB
Politics

Nigeria To Borrow $6.9 Billion From World Bank, IMF, AFDB

The Federal Government is to raise the sum of $6.9bn through external borrowing from the World Bank, the International Monetary Fund and the African Development Bank. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this on Monday in Abuja during a media briefing on the fiscal policy measures to tackle the impact of the coronavirus pandemic on the economy. The amount, according to her, is in form of concessional funding to support the implementation of the 2020 budget. The borrowing became imperative as a result of the negative impact of the coronavirus pandemic, which had led to unprecedented disruption in global supply chains. It has led to a sharp drop in global crude oil prices, turmoil in global stock and financial markets, and lockdow...
FG seeks $3.5bn from IMF, AfDB to support implementation of 2020 budget
News

FG seeks $3.5bn from IMF, AfDB to support implementation of 2020 budget

The Federal Government says it has applied for $3.5 billion request from International Monetary Fund (IMF) and African Development Bank (AfDB) to access concessional funding to support the implementation of the 2020 Budget. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed disclosed this during a news conference on fiscal stimulus measures in response to COVID-19 pandemic and oil prices fiscal shock in Abuja on Monday. Ahmed explained that the government applied for $2.5 billion from IMF on behalf of the states and Federal Government. She added that the Federal Government had sought $1.5 billion, while one billion dollars would go to the states from the IMF request. According to her, the sum of one billion dollars is also being expected from AfDB. Ahmed...
Global Economy In Recession Worse Than 2009 – IMF
News

Global Economy In Recession Worse Than 2009 – IMF

The International Monetary Fund (IMF), has said it is now clear the world economy is in a recession and recovery may only be in 2021. The IMF Managing Director Ms Kristalina Georgieva gave the indication yesterday at a call conference press briefing of the International Monetary and Financial Committee (IMFC). “We have reassessed the prospect for growth for 2020 and 2021. It is now clear that we have entered a recession – as bad as or worse than in 2009,” she said. “We do project recovery in 2021-in fact there may be a sizeable rebound, but only if we succeed with containing the virus – everywhere – and prevent liquidity problems from becoming a solvency issue” she explained further. The IMF is also worried about the long-lasting impact of the sudden stop of the world economy bec...
Despite Nigeria Border Closure, Benin Republic Maintains Strong Economy – IMF
News

Despite Nigeria Border Closure, Benin Republic Maintains Strong Economy – IMF

THE International Monetary Fund (IMF) has disclosed that the Republic of Benin has maintained a strong economic performance despite Nigeria’s closure of the land border connecting the two countries. Nigeria on the 19 September 2019, had abruptly halted import and export activities on the border as one of its strategies of stopping smuggling, trafficking and other criminal activities. Luc Eyraud, Deputy Division Chief in the IMF’s Fiscal Affairs who led the IMF team in its latest visit to Benin in a press release said the Beninese economic Real GDP is expected to grow by 6.4 per cent in 2019, mostly driven by the agriculture and transport sectors. “Growth should accelerate in 2020 and remain sustained over the medium term, buttressed by vigorous cotton production, construction,...
Zainab Ahmed Reveals Why IMF Supports Nigeria’s Border Closure
Politics

Zainab Ahmed Reveals Why IMF Supports Nigeria’s Border Closure

The Minister of Finance, Mrs . Zainab Ahmed, says the International Monetary Fund supports Nigeria’s closure of its land borders because it understands that the action is not punitive . Addressing newsmen in Washington on Sunday, Ahmed explained that the measure was intended to restore Nigeria’ s relationship with its neighbours , based on commitments made. She said that President Muhammadu Buhari did not want to approve the closure because he was mindful of the adverse effect it would have on the economies of neighbours . According to her, there were several engagements between Nigeria and the neighbouring countries toward securing compliance to the rules , “ but things got worse ” . “ Of course, there will be economic impact on the side of our neighbours due to the border clo...
IMF Says Border Closure Negatively Impacting Benin, Niger Republics
News

IMF Says Border Closure Negatively Impacting Benin, Niger Republics

The International Monetary Fund (IMF) has said the sustained closure of the Nigerian land borders is hurting economies of Benin Republic and Niger Republic. Abebe Aemro Selassie, Director, African Department (IMF) stated this at a press briefing during the launch of Economic outlook for sub-Saharan Africa at the ongoing World Bank/IMF annual meetings in Washington DC. “On the border closure in Nigeria which has been impacting Benin and Niger, our understanding is that the border has been closed, reflecting concerns about smuggling that’s been taking place, illegal trade, not the legal trade that you want to facilitate” he sisd. IMF is also optimistic the borders would soon open. “So we’re very hopeful that, you know, discussions will resolve the challenges that this illegal trade...
IMF Faults Forex Restrictions On 43 Items As Hurting Investments
News

IMF Faults Forex Restrictions On 43 Items As Hurting Investments

The foreign exchange restrictions placed on 43 items by the Central Bank of Nigeria (CBN) on Tuesday drew criticism from the International Monetary Fund (IMF). The policy is holding back Foreign Direct Investments (FDIs) into the local economy, IMF’s Divisional Chief, Research Department, Oya Celasun, told a news conference on the World Economic Outlook at the World Bank/IMF Annual Meetings in Washington D.C. Besides, the IMF chief said Nigeria requires a tight monetary policy and the unification of its exchange rates to achieve the desired growth. His position contradicted that of CBN Governor Godwin Emefiele who had always insisted that the apex bank acted in the best interest of the local economy. He said the decision to restrict forex access and shut the official foreig...
IMF Says Nigerian Government Dependent On Expensive Borrowing
News

IMF Says Nigerian Government Dependent On Expensive Borrowing

The International Monetary Fund has said that Nigeria’s “over-Optimistic” revenue assumptions has made the government dependent on expensive borrowing from the Central Bank of Nigeria. The IMF stated that plans to increase Value Added Tax and minimum wage would also halt the current deceleration of the country’s inflation rate. A statement by the IMF said, “Over-optimistic revenue projections have led to higher financing needs than initially envisaged, resulting in over-reliance on the expensive borrowing from the central bank to finance the deficit. “Inflation will likely pick up in 2020 following rising minimum wages and a higher VAT rate, despite a tight monetary policy.” In the spending plan for 2020 released by President Muhammadu Buhari, the government intends to incr...
Buhari Accuses World Bank, IMF, Others Of Publishing Inaccurate Data
Politics

Buhari Accuses World Bank, IMF, Others Of Publishing Inaccurate Data

President Muhammadu Buhari on Wednesday met with the newly constituted Presidential Economic Advisory Council (ECA). Mr Buhari played host to the ECA when the members of the council visited him at the presidential villa in Abuja. The body was constituted last month with the mandate to advise the president on matters relating to the economy. After the gathering, the president accused the World Bank and the International Monetary Fund of publishing inaccurate statistical data about the country. Buhari also said he has mandated his economic advisory team with the new task of having proper statistics gathering mechanisms. Both the World Bank and the IMF have in recent times lamented the debt profile of Nigeria in relation to GDP. The World Poverty Clock also described Nig...
What Buhari, APC Have Done To Nigeria – Timi Frank
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What Buhari, APC Have Done To Nigeria – Timi Frank

A political activist and former Deputy National Publicity Secretary of the All Progressives Congress (APC), Comrade Timi Frank, on Sunday, accused General Muhammadu Buhari and the ruling party of ‘Nazifying’ Nigeria with deepening poverty. Frank said this in a statement on Sunday in reaction to a report by The Economist Magazine that Nigerians have become the poorest citizens of a country in the whole world, under President Muhammadu Buhari’s first term in office. He lamented what he called the gradual extermination of Nigerians through poverty is an incontrovertible fact that the present government has refused to acknowledge. “The reality on our streets speaks to that of a failed country. But the agony and irony of this precarious situation is that General Buhari and his boot lic...
Finance Minister okays IMF advice on subsidy removal
News

Finance Minister okays IMF advice on subsidy removal

Finance Minister, Mrs. Zainab Ahmed, on Thursday, described the International Monetary Fund’s (IMF’s) advice to the Federal Government on the need to remove fuel subsidy as a good advice. Speaking at the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington D.C, she said: ” The advice from the IMF on fuel subsidy removal was good one but also we have to implement it in a manner that is both successful and sustainable. “We are not in a situation to wake up one day and just remove subsidy. We have to educate the people, we have to show Nigerians what the replacement for those subsidies will be. So,  we have a lot of work to do. We also need to understand that you don’t remove large amounts of subsidy in one go, it has to be graduated and the public has to be well-in...
Finance Minister okays IMF advice on subsidy removal
News

Finance Minister okays IMF advice on subsidy removal

Finance Minister, Mrs. Zainab Ahmed, on Thursday, described the International Monetary Fund’s (IMF’s) advice to the Federal Government on the need to remove fuel subsidy as a good advice. Speaking at the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington D.C, she said: ” The advice from the IMF on fuel subsidy removal was good one but also we have to implement it in a manner that is both successful and sustainable. “We are not in a situation to wake up one day and just remove subsidy. We have to educate the people, we have to show Nigerians what the replacement for those subsidies will be. So,  we have a lot of work to do. We also need to understand that you don’t remove large amounts of subsidy in one go, it has to be graduated and the public has to be well-inform...
IMF advises Nigeria to remove fuel subsidies
News

IMF advises Nigeria to remove fuel subsidies

The International Monetary Fund (IMF) on Thursday advised Nigeria to remove fossil fuel subsidy and deploy savings from the scheme to fix social infrastructure. IMF Managing Director, Christine Lagarde gave the advice during the opening ceremony at the ongoing World Bank/IMF Spring Meetings in Washington DC. She urged Nigeria to establish Social protection Safety Net to help government meet the needs of people at the lower cadre of the society, saying about $5.2 trillion has so far been sent on fuel subsidies and the consequences thereof. She said: “I will give you the general principle. For various reasons and as a general principle, we believe that removing fossil fuel subsidies is the right way to go. “And the Fiscal Affairs department has actually identified, how much would have be...
Ending extreme poverty in Africa by 2030 doubtful, says World Bank
News

Ending extreme poverty in Africa by 2030 doubtful, says World Bank

The World Bank Group (WBG’s) projection to end extreme poverty in Africa is no longer feasible, its President, David Malpass, has said. The WBG chief, who spoke during a press briefing on Thursday at the on-going Word Bank Group/the International Monetary Fund (IMF) Spring Meetings in Washington DC,  said a combination of waning structural reforms in major economies, financial stress in some large emerging markets and elevated policy uncertainty globally have altered the bank’s earlier forecast. He said: “On current trends, per capita income in growth in sub-Saharan Africa as a whole is now projected to stay below one per cent until at least 2021 which elevates the risk of a further concentration of extreme poverty on the continent.” He stressed that this fact is extremely troubli...
IMF Ranks Nigeria Second Worst In The World In Use Of Sovereign Wealth Fund
News

IMF Ranks Nigeria Second Worst In The World In Use Of Sovereign Wealth Fund

The International Monetary Fund has ranked Nigeria as the second worst country in the world in the use of sovereign wealth funds. According to the Fiscal Monitor report released on Wednesday, Qatar was the only country worse than Nigeria on the index. The Bretton Wood institution said the index was compiled using the corporate governance and transparency scores of the sovereign wealth funds and the size of assets as a percentage of 2016 GDP of the countries considered.
FG Releases N460b For Capital Budget
News

FG Releases N460b For Capital Budget

The Federal Ministry of Finance has released a total of N460 billion for the execution of various capital projects captured in the 2018 Budget. President Buhari signed the 2018 Budget into Law Wednesday June 20, 2018 at the State House, Abuja. The Minister of Finance, Hajiya Zainab Ahmed, disclosed this in a joint interview with the Minister of Budget and National Planning, Sen. Udoma Udoma, on the sidelines of the on-going International Monetary Fund (IMF) and World Bank Annual Meetings in Bali, Indonesia. She also gave indications that Nigerian government’s shareholding in the African Export -Import Bank (Afrexim) would be increased to regain the nation’s leading position in the continental bank. Fielding questions on capital releases, Sen. Udoma said, “The amount of capital...
Oil Dips As IMF Cuts Growth Outlook; Eyes On Hurricane
News

Oil Dips As IMF Cuts Growth Outlook; Eyes On Hurricane

Oil prices slipped on Wednesday after the IMF lowered its global growth forecasts, but markets were supported as Hurricane Michael moved toward Florida causing the shutdown of nearly 40 per cent of U.S. Gulf of Mexico crude production. IMF Brent crude LCOc1 was down 20 cents at $84.80 a barrel by 0915 GMT after a 1.3 per cent gain on Tuesday. U.S. light crude CLc1 was down 15 cents at $74.81. “Oil prices have stabilized for the moment – between a real and a metaphorical storm,” said Fiona Cincotta, senior market analyst at City Index. “Hurricane Michael is powering ahead toward the Gulf of Mexico but it now seems likely to miss the main production areas there. On the other hand, Iran sanctions are only weeks away.” The International Monetary Fund cut its global economic growth...
Nigeria’s Foreign Debt Stands At $22.08bn, Local N3.48trn
News

Nigeria’s Foreign Debt Stands At $22.08bn, Local N3.48trn

The National Bureau of Statistics (NBS) says the country’s foreign debt stands at 22.08billion dollars. The bureau’s “Nigerian Domestic and Foreign Debt’’ Q2 2018 report released in Abuja, said the country’s domestic debt stood at N3.48trillion. According to the bureau, further disaggregation of Nigeria’s foreign debt shows that 10.88billion dollars of the debt is multilateral and 274.98million dollars is bilateral. Multilateral debts are debts owed by developing countries to the World Bank and IMF, known as the Bretton Woods Institutions while bilateral debt is a simple loan arrangement between a single borrower and a single lender. It said: “There is another 2.12billion dollar bilateral from the Exim Bank of China, Japan International Cooperation Agency, India and KfW bank while 8...
UK To Sink £8b In Africa To Create Jobs
News

UK To Sink £8b In Africa To Create Jobs

Africa’s public and private set will enjoy £8 billion UK’s investment to create jobs and boost growth over the next four years CDC Group, the UK’s Development Finance Institution, will aim to invest up to £3.5 billion in Africa, supporting hundreds of thousands of jobs. The UK will aim to mobilise a further £4 billion of private investment for African countries, particularly from the City of London. The UK’s range of measures to boost much-needed investment in businesses and infrastructure across Africa was unveiled by the Prime Minister, Theresa May in Cape Town. “This includes for the first time ever setting a clear ambition of mobilising an additional £4 billion of private sector investment into the continent by working more closely with the City of London.’’ This comes a...
Okonjo-Iweala Shares Story Of How Herself And IMF Boss Christiane Lagarde, Were Disgraced At The Presidential Villa Because She’d Stopped The Diversion Of $6m
News

Okonjo-Iweala Shares Story Of How Herself And IMF Boss Christiane Lagarde, Were Disgraced At The Presidential Villa Because She’d Stopped The Diversion Of $6m

Former Minister of Finance, Ngozi Okonjo-Iweala recently had an event preceding the signing of the book, ‘Fighting Corruption is Dangerous: The Story Behind the Headlines’ which held at the Politics and Prose, Washington DC. At the event, Okonjo-Iweala, narrated how she was locked out of the presidential villa because she spoke out against corruption. She revealed how her bold move to confront a deadly group saved her from being confined to a wheelchair for the rest of her life. She narrated how IMF chairman, Christine Lagarde’s visit in December 2011, was almost marred by a top official in Jonathan’s government all in a bid to force her to back down in implementing the presidential order to end Cargo Tracking Note, a transaction that was yielding $6 million annually but was not g...
IMF Lauds Nigeria’s Strong Recovery In Foreign Exchange Reserves
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IMF Lauds Nigeria’s Strong Recovery In Foreign Exchange Reserves

The International Monetary Fund (IMF) on Wednesday welcomed Nigeria’s exit from economic recession and lauded its strong recovery in foreign exchange reserves. IMF said this in a report released on Wednesday in Washington DC by its Executive Board after the conclusion of Article IV Consultation with Nigeria. According to the report, the Executive Directors of IMF welcomed Nigeria’s exit from recession and the strong recovery in foreign exchange reserves, helped by rising oil prices and new foreign exchange measures. They commended the progress in implementing the Economic Recovery and Growth Plan, including the convergence in foreign exchange windows, tight monetary policy and improvements in tax administration. IMF, however, said that though, the Nigerian economy has exited re...
IMF Advises Nigeria To Increase Monetary Policy Rate, Excise Tax
News

IMF Advises Nigeria To Increase Monetary Policy Rate, Excise Tax

The International Monetary Fund (IMF) has advised that Nigeria increase excise tax and monetary policy rate as parts of efforts being made to strengthen the economy. The lender said Nigeria needed more ambitious tax policy measures, including through reforming the value-added tax, increasing excise, and rationalising tax incentives. Nigeria’s economy, which slipped into its worst recession in 25 years, exited with a 0.83 GDP growth in 2017. The monetary policy committee of the Central Bank of Nigeria has kept MPR, which determines the interest rate, at 14 percent since 2016 to help the economy combat inflation. The committee has been unable to meet in 2018 because of the senate’s refusal to confirm appointees for the committee, which can not form a quorum at present. “Direct...
Nigerians Getting Poorer, IMF Tells Federal Government
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Nigerians Getting Poorer, IMF Tells Federal Government

The International Monetary Fund, IMF has warned Nigeria that delay to implement reforms, incoherent policies, security issues, and tensions ahead of the 2019 general elections could have a negative impact on the nation’s economy as it could lead to a reverse of recent surge in capital inflow into the country. Further delays in policy action including pre-election pressures can only make the inevitable adjustment of the economy more difficult and costlier, IMF said in the report on Nigeria published by news agencies. The Fund also warned that Nigeria's people are getting poorer despite the country's slow recovery from recession while warning that "Comprehensive and coherent" economic policies "remain urgent and must not be delayed by approaching elections and recovering oil prices," in ...
Why Nigeria Must Stop Borrowing To Fund Budget – Senate Committee
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Why Nigeria Must Stop Borrowing To Fund Budget – Senate Committee

Nigeria needs to lower its debt profile in order to make financial resources available for priority projects, the Senate committee on Local and Foreign Debts has posited. During a courtesy visit to the Vice President, Yemi Osinbajo, on Monday, Chairman of the committee, Shehu Sani, said the country’s borrowing which was heightened during the period of recession, needs to be cut. The lawmaker said the borrowings that followed the period of recession was justified as the country needed to invest massively in infrastructure, agriculture, mining and manufacturing, with multiplier implication of increasing employment and reflating the economy. He, however, maintained the need to check excessive borrowing. “The country took up more borrowings, and gradually Nigeria’s total debt stock...
Nigeria’s Economy Grew 1.92 Pct In Q4 2017
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Nigeria’s Economy Grew 1.92 Pct In Q4 2017

Nigeria’s economy grew 1.92 percent in the last quarter of 2017 compared with a 1.73 percent contraction in the same period of the previous year, the National Bureau of Statistics said on Tuesday. The OPEC member’s gross domestic product (GDP) grew by 0.83 percent in 2017 as a whole after shrinking by 1.58 percent in 2016, its first annual contraction in 25 years. Oil production rose to 1.91 million barrels a day (mbpd) in the last quarter of 2017 compared with 1.76 mbpd in the same period of 2016, the statistics office said. The recession in 2016 was largely caused by low crude oil prices and militant attacks on energy facilities in the Niger Delta. Crude sales make up two-thirds of government revenue. Africa’s biggest economy returned to growth in the second quarter of 2017 b...
IMF Warns Nigeria Over Rising Debt Profile, Calls For Urgent Diversification
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IMF Warns Nigeria Over Rising Debt Profile, Calls For Urgent Diversification

The International Monetary Fund (IMF) has cautioned that Nigeria should carefully manage its debt profile as it could be worse if nothing is done to cushion it. The International body has also called on Nigeria and other oil dependent economies in Africa to urgently diversify. This was contained in IMF 2017 Economic Outlook released on Thursday, which claimed that public debt rose above 50 per-cent of Gross Domestic Product (GDP) in 22 sub-Saharan African countries at the end of 2016 and that there was the possibility for a rise as high as 60 per cent in countries like Nigeria, Gabon and Angola which had always depended on oil. The report entitled, “Fiscal Adjustment and Economic Diversification,” was presented by IMF Senior Resident Representative and Mission Chief for Nigeria (Africa ...
Egypt, IMF Reach Agreement On $2 Billion Loan Instalment
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Egypt, IMF Reach Agreement On $2 Billion Loan Instalment

Egypt has reached a staff-level agreement with the International Monetary Fund for an instalment of about $2 billion more from a three-year, $12 billion loan programme, the IMF said in a statement on Friday. The payment, which is still subject to IMF executive board approval, will bring total disbursements under the program to about $6 billion. Egypt is pushing through an ambitious economic reform package as part of the loan deal. An International Monetary Fund (IMF) team led by Subir Lall visited Cairo from October 25 to November 9, to hold discussions with the Egyptian authorities on the country ongoing economic programme. The staff-level agreement on the second review reaffirms the authorities’ commitment to their reform programme supported by the IMF. According to the state...
Federal Govt Signs Agreement For Lagos-Abidjan Highway
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Federal Govt Signs Agreement For Lagos-Abidjan Highway

Babatunde Fashola, minister of power, works and housing, says the federal government has signed financial agreement for the execution of Lagos-Abidjan highway. NAN reports that Olusegun Ogunkayode, senior information officer in the ministry, disclosed this in a statement in Abuja on Wednesday. According to the statement, Fashola made this known at the ninth steering committee and experts meeting of the Lagos-Abidjan Corridor Highway Development Programme. The minister said the signing of the financial agreement was a demonstration of the federal government’s commitment to the realisation of the project. Fashola said road development was crucial to the economic growth of any nation, adding that the meeting was important considering the need for West African countries to join the...
IMF Chief Christine Lagarde Warns Of Dark Future Over Climate Change
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IMF Chief Christine Lagarde Warns Of Dark Future Over Climate Change

The world faces a “dark future” if it fails to tackle climate change and inequality, IMF managing director Christine Lagarde warned on Tuesday. “If we don’t address these issues… we will be moving to a dark future” in 50 years, she told a major economic conference in the Saudi capital. On climate change, Lagarde said that “we will be toasted, roasted and grilled” if the world fails to take “critical decisions” on the issue. In 2015, around 195 nations signed the Paris climate agreement which set measures to reduce greenhouse gas emissions to prevent temperatures rising by more than two degrees in around 50 years.  But US President Donald Trump announced in June the start of a three-year process to pull out of the pact, arguing that it would put the US at an economic disadvantage....
Senate Backs Fed Govt’s Plan To Tax Rich Nigerians More
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Senate Backs Fed Govt’s Plan To Tax Rich Nigerians More

The Senate has thrown its weight behind the position of the Federal Government that rich Nigerians should pay more taxes. According to the upper legislative chamber, people who earn higher must pay taxes on luxury goods. Deputy Senate President, Ike Ekweremadu, who presided over Tuesday’s legislative business, said the rich must pay more taxes, while poor Nigerians should pay less. He said with more money in government’s confers, more Nigerians would be lifted out of poverty. His words, “In other countries of the world, governments make deliberate efforts to get their people out of poverty. This is the practice all over the world. Nigeria should not be different. We need to provide for our people and get them out of poverty. “There are so many ways we can achieve this. Governme...
World Bank, IMF, Oxfam Urge Nigeria To Invest In Human Capital
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World Bank, IMF, Oxfam Urge Nigeria To Invest In Human Capital

The World Bank has urged Nigeria to faithfully build and invest in critical infrastructure that would wholly support its growth aspirations. The bank’s Group President, Jim Yong Kim, in his opening remarks at the 2017 yearly meeting of the International Monetary Fund (IMF)-World Bank Group, said Nigeria needed to build resilience, like others, against the overlapping challenges it faced today, including climate change, conflict, forced displacements, famine and disease. According to him, most of these challenges could be tackled with deliberate efforts to raise human capacity, which calls for key investment in education. “Nigeria should think ahead. It should invest in what will grow the economy, shifting its priority. In fact, this is true of the rest of African economies,” he sa...
IMF Warns Nigeria, Others On Dangers Of Foreign Loans
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IMF Warns Nigeria, Others On Dangers Of Foreign Loans

The International Monetary Fund, IMF, yesterday, warned Nigeria and other low income countries against the dangers of reliance on foreign borrowings. Data by the Nigeria Bureau of Statistics, NBS, indicates the country’s increased exposure to foreign loans, which rose by 40 percent to $15.047 billion as at September 2017 from $10.718 billion in 2015. Financial Counsellor and Director, Monetary and Capital Markets Department, IMF, Tobias Andrian, gave this warning while speaking at a press briefing on the Global Financial Stability Report released at the World Bank/IMF Annual Meetings in Washington D.C. He warned that greater reliance on foreign borrowing may at some point become a vulnerability to the economies of Nigeria and other low income countries. Andrian noted that portf...
IMF Raises Concerns Over Weakness In Nigerian Banks
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IMF Raises Concerns Over Weakness In Nigerian Banks

The International Monetary Fund on Tuesday expressed concerns over weaknesses in Nigerian banks and said that the situation might weigh on economic growth in the medium term. The IMF stated this in its World Economic Outlook report, which was released at its headquarters in Washington DC, United States. In the report, the IMF maintained that the Nigerian economy would grow by 0.8 per cent this year, after emerging from recession. The Economic Counsellor and Director of Research, IMF, Maurice Obstfeld, spoke at a press briefing at the Fund’s headquarters shortly after the release of the report. Obstfeld said policy implementation and market segmentation in a foreign exchange market that remained dependent on the Central Bank of Nigeria’s interventions would have some impact on t...
NZ First Leader Welcomes Politically Driven Drop In NZ$
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NZ First Leader Welcomes Politically Driven Drop In NZ$

The leader of the small nationalist party that will decide New Zealand's next government said on Tuesday that exporters should welcome a recent fall in the local dollar following an inconclusive general election. The New Zealand dollar, or kiwi, fell to its lowest levels since late May on Monday after a final tally of votes at the weekend showed the opposition Labour-Green bloc gaining ground over the ruling National Party, although the latter still has the largest number of seats. The final tally led to market speculation that New Zealand First, whose support is needed by both parties to gain enough seats to govern under the country's proportional representation system, would be more comfortable joining forces with the center-left Labour-Green bloc, prompting investors to sell New Zeala...
Informal Economy Not Enough To Handle Africa’s Workforce Explosion – IMF
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Informal Economy Not Enough To Handle Africa’s Workforce Explosion – IMF

Unemployment in Nigeria, sub-Saharan Africa’s largest economy, is running at more than 14 percent and climbing; in South Africa, the second largest economy, it is over 27 percent. For youth in both places, it is far more. This may seem bad enough, but according to International Monetary Fund calculations the sub-Saharan Africa region’s jobs travails are in danger of reaching uncharted territory in less than two decades. That is, unless the economies can create jobs for their burgeoning, young population. “By 2035, sub-Saharan Africa will have more working-age people than the rest of the world’s regions combined,” Reuters quoted the IMF to have written in a blog post. “This growing workforce will have to be met with jobs.” This has major implications for the region’s economy, it...
Nigerian Economy To Grow Faster Than South Africa’s In 2018 – IMF
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Nigerian Economy To Grow Faster Than South Africa’s In 2018 – IMF

The International Monetary Fund (IMF) projects that Nigeria’s economy will grow at a faster pace than the South African economy in the 2018 fiscal year. According to its World Economic Outlook (WEO) for July 2017, the IMF said Nigeria will grow at 1.9 percent in 2018, while South Africa will only climb by 1.2 percent. In 2016, the Nigerian economy contracted by 1.6 percent, while South Africa expanded by 0.3 percent. Projections for 2017 put South Africa’s growth at 1 percent, while Nigeria is expected to muster just 0.8 percent. The Bretton Woods institution — which held global growth projections at 3.5 percent in 2017 and 3.6 percent in 2018 — said growth was marked down in South Africa, due to elevated political uncertainty. “In Sub-Saharan Africa, the outlook remains challe...