IMF lauds Sanusi, Okonjo-Iweala for strength of Nigeria’s economy in 2013
Posted by: The Citizen in Business, Headline 2 days ago December 6, 2013

The International Monetary Fund (IMF) has declared that Nigeria’s economy performed well during 2013.
The IMF Mission Chief and Senior Resident Representative in Nigeria, Gene Leon, stated this during a visit to Nigeria between November 13 and 26 to conduct discussions for the 2013 Article IV consultation.
The mission met with the Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo-Iweala; the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi; senior government officials; members of the legislature; and representatives of the private sector with a verdict that Nigeria’s economy did very well during the year.

The Fund’s mission issued a statement at the conclusion of the visit, which reads in part: “Nigeria’s economy has continued to perform strongly in 2013. Real GDP grew by 6.8 percent in the third quarter of 2013 (compared to third quarter 2012), supported by robust performances in agriculture, services, and trade. Oil theft/production losses have adversely impacted export receipts and government revenues, leading to a significant drawdown from the Excess Crude Account. Inflation declined to 7.8 percent (end-September 2013) from 12 percent at end 2012, in part owing to lower food prices and monetary policy implemented by the Central Bank of Nigeria (CBN). The exchange rate has been stable, and the banking sector is well capitalized with low levels of non-performing loans.
“Although the outlook is positive, risks need to be managed. Growth is projected to increase to about 7 percent in 2014, while inflation should remain subdued in the single digits. Nigeria could be affected, however, by a decline in oil prices, the pace of recovery in global economic and financial conditions, capital outflows, continued losses in oil production, or increased security concerns. At the same time, the economy can manage such shocks given a relatively flexible exchange rate regime, improved financial crisis management capacity, and a stable banking system. But fiscal buffers are low and a sustained high rate of growth is needed to reduce unemployment, and poverty.
“Fiscal consolidation is progressing well, and the momentum needs to be preserved through the ongoing election cycle. Key public financial management reforms are underway, including the implementation of a Treasury Single Account (TSA) and integrated information management systems, but lower-than-budgeted oil revenues are impacting budgetary plans at Federal, State, and Local levels and highlighting the need for rebuilding fiscal buffers to manage oil revenue volatility. Moving toward a sustainable non-oil primary deficit path will require resolve in continuing fiscal consolidation, including through resisting procyclical election spending, mobilizing non-oil revenue, improving efficiency in the public sector, and strengthening transparency in oil sector governance.

“The current monetary stance is appropriate and should remain geared towards sustaining low inflation and a stable financial system. Managing liquidity in the banking system remains a priority, and will be aided by the implementation of the TSA and prudent fiscal management. Likewise, the CBN has maintained stability of the naira, containing inflation and facilitating business confidence. However, the continued importance of oil receipts and the magnitude of portfolio follows present potential vulnerabilities, and exchange rate flexibility may be a useful tool in the event of persistent pressures. Ongoing initiatives to strengthen the supervisory framework, including supervision of banking groups, should continue, and Asset Management Corporation of Nigeria’s activities phased out gradually.
“To promote inclusive growth and mitigate the impact of vulnerabilities, ongoing structural and institutional reforms should be pursued resolutely. The 20/20 Vision and the Transformation Agenda provide a framework for ongoing reforms, including the privatization of the generation and distribution of energy, initiatives to increase food security and viability of agriculture, and programs funded through the Universal Basic Education Commission to improve human capital development.

In addition, access to financial services for small-and medium-size enterprises, which have been key in many countries to enabling all to benefit from growth, could be improved. Other initiatives to improve the business environment and investment promotion could support diversification across sectors, but should be underpinned mainly by improvements in productivity and competitiveness. Growth in the next decade will need to rely on the continued implementation of reforms to strengthen institutions, improve efficiency, and prioritize quality infrastructure investments.
“The mission would like to thank the authorities and technical staff for their excellent cooperation”, the statement added.

Joke of the century,and yet the naira keeps falling behind the dollar.

For being puppets as always.

Our economy is growing because we got out of the shackles of IMF/ World bank debt and their weird prescriptions which was only geared towards taking the little resources we had.
Gone are the days of SAP and other voodoo economics.

Aigbofa: Our economy if growing because we got out of the shackles of IMF/ World bank debt and their weird prescriptions which was only geared towards taking the little resources we had.
Gone are the days of SAP and other voodoo economics.

Have you ever asked yourself why we asked the IMF for loans despite the conditionalities that such loans attract? The IMF is like a car mechanic, they fix your vehicle when its broken down and you can't solve the problem by yourself. You can say they did a bad repair job, but if things didn't break down in the first place, the IMF would never have been called for assistance.

The truth is 99% of APC e-rats and their commanders at the corridors of power will not understand what IMF means when they talk about GDP, Fiscal Consolidation, Treasury Single Account, single digit Inflation e.t.c all they know is oil subsidy, insecurity, this person have stolen our oil wells, excess crude account, corruption bla bla bla. At least for the first time in Nigeria we are having a Government that understands and pays attention to Macro and Micro economics Indices and not the 'anywhere belle face' govt. that APC is planning for us.

And the IMF lauded Wall Street before the house of cards collapsed .
Only fools take these guys seriously .
The IMF/world bank is simply the FRAT club of the neo conservatives of wealthy countries ,who seek to keep their edge by keeping others down ;and where
reality is always the opposite of their views and opinions.

Sorry no takers

The life of the common man on the street is getting worse

4 Play:

Have you ever asked yourself why we asked the IMF for loans despite the conditionalities that such loans attract? The IMF is like a car mechanic, they fix your vehicle when its broken down and you can't solve the problem by yourself. You can say they did a bad repair job, but if things didn't break down in the first place, the IMF would never have been called for assistance.

The IMF is not like any mechanic my my friend. More like a loan shark who gave you a loan with high interest rate and make you pay several times the original amount.
And when you are finally broke, they come in and ask you why you and your family are still having three meals a day.
Then they help you reduce it to one and a half so you can continue to pay.
If you make the mistake of going back that you are still having a difficulty, they will ask you to sell your house and rent a cheaper apartment.
They won't stop until you have nothing left.

December 1, 2012 it was 252 official rate to 1 pound.

December 1, 2013 it was 266 official rate to 1 pound.

Okonjo Iweala and Sanusi deserve Nobel Prize for Economics. They have impoverished the people of Nigeria on a grand scale.

otokx: December 1, 2012 it was 252 official rate to 1 pound.

December 1, 2013 it was 266 official rate to 1 pound.

Okonjo Iweala and Sanusi deserve Nobel Prize for Economics. They have impoverished the people of Nigeria on a grand scale.

My brother, they still think Nigerians are fools. How much was a bag of rice this time last year and how much is it now? All the sectors of the economy are only growing on paper.

Voodoo economics

otokx: December 1, 2012 it was 252 official rate to 1 pound.

December 1, 2013 it was 266 official rate to 1 pound.

Okonjo Iweala and Sanusi deserve Nobel Prize for Economics. They have impoverished the people of Nigeria on a grand scale.

What NONSENSE are you trying to spur with this comment? What's yr point?... You some times leave no doubt about how pea-sized yr brain really is, @otokx

taharqa: What NONSENSE are you trying to spur with this comment? What's yr point?... You some times leave no doubt about how pea-sized yr brain really is, @otokx

Some insulted and abused Mandela but today he is being celebrated. We will not allow Nigeria to die before we celebrate.

When price of goods and services keep rising and our income from sales of oil and custom tax keeps reducing then it is clear that government is doing badly.

Aigbofa:

The IMF is not like any mechanic my my friend. More like a loan shark who gave you a loan with high interest rate and make you pay several times the original amount.
And when you are finally broke, they come in and ask you why you and your family are still having three meals a day.
Then they help you reduce it to one and a half so you can continue to pay.
If you make the mistake of going back that you are still having a difficulty, they will ask you to sell your house and rent a cheaper apartment.
They won't stop until you have nothing left.

IMF loans carry interest rates that are less than market rates. Even if your analogy is correct, why would any country borrow from the IMF if they're not broke already? The IMF lends money only to countries that are so broke, they have no other way of raising money. The reason Nigeria took IMF loans in the first place is that we had no other creditor willing to lend us money. When you seek credit from the IMF, the IMF will impose conditionalities to ensure that they get their money back and that you don't suffer the same problem again.

The story that Nigeria's economic problems stemmed from the IMF is a story that is damaging not merely because it's inaccurate, but by misdiagnosing our problem, we risk having a re-run of the same problem in future.

otokx:

Some insulted and abused Mandela but today he is being celebrated. We will not allow Nigeria to die before we celebrate.

When price of goods and services keep rising and our income from sales of oil and custom tax keeps reducing then it is clear that government is doing badly.

Stop been an IGNORAMUS (ie if you can). Any Economy where 'prices of goods and services' does not 'keep rising' (ie Inflated) is actuali d 'bad Economy'. You may ask Japan if in any doubts, OLODO.... And, that Nigeria's Oil Sales is reducing (actuali, doesn't measure up to budgeted estimates) yet virtuali EVERY indices of its Economy, including its NonOil Sector which is presently undergoing its greatest expansion and growth since d 1970s/early 1980s, should have told even an elementary mind more about the actual Resilence/Trajectory of that Economy, esp since d causative agents of d unfortunate dip in Oil Sales is Temporary.... #Growabrain,guy

Keep insulting but the facts are there, decrease in revenue from both oil and non oil exports. Increase in foreign exchange rate, rise in inflation.

Quite unsurprisingly, no mention was made of how many jobs were created by this expanding economy. How then are Nigerians themselves to benefit?

HNosegbe: Quite unsurprisingly, no mention was made of how many jobs were created by this expanding economy. How then are Nigerians themselves to benefit?

We don't have good stats so can't keep track of job creation or losses. However, I don't see any evidence of contraction in household consumption in Nigeria,i.e., no evidence that sale of basic consumer goods such as detergents, soap, drinks et al., are dropping. I think the evidence suggests that the economy is growing but not benefiting people at the lower end of the income spectrum.

otokx: Keep insulting but the facts are there, decrease in revenue from both oil and non oil exports. Increase in foreign exchange rate, rise in inflation.

NO, @otokx: am not insulting you, guy; am just calling it as it is. You are reali an OLODO and an IGNORAMUS. For instance, Nigeria's NonOil Exports wud actuali be bw $8-$10billion this year (compared to about $3billion for the last 2years and about $1billion or less just some few years ago). As a mata of fact, d data suggests that Nigeria is clearly on a path of finally Diversifying its Economy. In same vein, Inflation RATE has actuali decreased significantly from more than 12% yr-on-yr sometime last year to Single digit 7.8 in October this year (in fact, d Inflation Rate has basically been in d Single digit this year- a rare and a very very significant development). On Exchange Rate, yes d Naira has declined by about 2% so far this year against d Dollar, but still it is still one of d 'better' performing in d world, esp amongst d large Developing Economies (like Russia, India, Brazil, etc) where uncertainties in d global Economy particularly d temporary flight of international capital due to d expected quantitative easing earlier planned by d US Treasury. The CBN has been trying to keep d Exchange Rates relatively stable within its budgeted targeted range of #155(+/- #3); and they are largely succeeding in doing just that.... Your Assumptions, that formed d basis of yr Rants, are therefore wrong (or largely so except d dip in Oil sales). In other words, yr 'facts' are Wrong. So you see @otokx, when I call you an IGNORAMUS, am not actually insulting you; I just am saying it as it is...

This Taharqa sef.

taharqa: NO, @otokx: am not insulting you, guy; am just calling it as it is. You are reali an OLODO and an IGNORAMUS. For instance, Nigeria's NonOil Exports wud actuali be bw $8-$10billion this year (compared to about $3billion for the last 2years and about $1billion or less just some few years ago). As a mata of fact, d data suggests that Nigeria is clearly on a path of finally Diversifying its Economy. In same vein, Inflation RATE has actuali decreased significantly from more than 12% yr-on-yr sometime last year to Single digit 7.8 in October this year (in fact, d Inflation Rate has basically been in d Single digit this year- a rare and a very very significant development). On Exchange Rate, yes d Naira has declined by about 2% so far this year against d Dollar, but still it is still one of d 'better' performing in d world, esp amongst d large Developing Economies (like Russia, India, Brazil, etc) where uncertainties in d global Economy particularly d temporary flight of international capital due to d expected quantitative easing earlier planned by d US Treasury. The CBN has been trying to keep d Exchange Rates relatively stable within its budgeted targeted range of #155(+/- #3); and they are largely succeeding in doing just that.... Your Assumptions, that formed d basis of yr Rants, are therefore wrong (or largely so except d dip in Oil sales). In other words, yr 'facts' are Wrong. So you see @otokx, when I call you an IGNORAMUS, am not actually insulting you; I just am saying it as it is...

Keep up the deceit

Tarhaqa said 153 then changed mind said 155 with a +/- caveat of 3 but wat is it as of friday? 170.

My argument was based on the exchange rate and you are unable to tackle that. Be it pounds or dollar, our naira is down and that in 12 calendar months.

Like i said keep up the deceit.

otokx: Keep insulting but the facts are there, decrease in revenue from both oil and non oil exports. Increase in foreign exchange rate, rise in inflation.

You keep using such absurd statements like "the facts are there". Where exactly? Because the only place that I see such "facts" are from statements and posts by APC people. All the regular organisations responsible for statistics keep posting otherwise. So where in the world are you getting your facts from.

You say the average Nigerian is getting worse. Where did you do your survey? Even common economics of demand and supply suggests the contrary. Sales are up for most products like household goods, food and beverage, recharge cards electronics, etc. Sales are not dwindling. These companies are posting huge profits. Car sales and importation have increased massively. There are no stories of children dying of malnutrition. Its possible they exist, but certainly not in a scale that will suggest a crisis as it obviously isnt even being noticed. I have been following NL for a while now and have never seen any thread that shows children starving from any part of Nigeria yet. So where in the world are you getting your own statistics from? Do you just derive pleasure from cooking them up?

Mohammed lair come and tell nigerians your own analysis I dont think dem dem ,.agbameta, abgaworo understand this one

HNosegbe: This Taharqa sef.

Wetin I do, Bros ??

If we are to believe historic data on growth in Nigeria, Nigeria's economy has always been growing. In fact, it grew at close to 9% in the early 1990s. However, for an inefficient statistical system like we have in Nigeria, such figures will always be taken with a pinch of salt. Fact is, the reality on the ground does little to suggest that the economy is growing or has grown in the past.

On the IMFs assessment of risk. What the IMF asks for here is a currency devaluation which is unrealistic given Nigeria's high import dependence. I'm of the view that with genuine reforms, devaluation could bring positive impacts on the economy. However, in an economy where leadership is bankrupt, such reforms will continue to be a mirage and devaluation will only lead to further pressure on the naira, reserves and there will be a need to further devalue to achieve stability.

Before tribalists come in, I would just like to point out that both persons are from two different regions and two different parties.

They are successful because they put Nigeria BEFORE tribe or religion.

God bless o!

KwoiZabo: The truth is 99% of APC e-rats and their commanders at the corridors of power will not understand what IMF means when they talk about GDP, Fiscal Consolidation, Treasury Single Account, single digit Inflation e.t.c all they know is oil subsidy, insecurity, this person have stolen our oil wells, excess crude account, corruption bla bla bla. At least for the first time in Nigeria we are having a Government that understands and pays attention to Macro and Micro economics Indices and not the 'anywhere belle face' govt. that APC is planning for us.

Our first professional divider!

Just ignore him. Anyone who thinks that "APC e rats" are complaining about oil wells being stolen (MEND is APC invention now??), is not someone worth paying attention to.

Just say NO to divide and rule politics. We are all one nation.

The Nigerian economy is something that we ALL contribute to. Every. single. one. of. us. That includes APC members, PDP members, APGA, LP, Christian, Muslim, North, South, East, and West. Our economy is derived from everyone's hard work. Man must work!

Instead of congratulating any politician, lets congratulate ourselves for keeping the country growing!

Congratulations fellow Nigerians, you did it!

Congratulations to recent graduates, you helped make the country smarter!

Congratulations to market sellers, your hustle makes our lives better!

Congratulations to small scale manufacturers, you are reducing our dependence on imports!

Congratulations to JAMBites, keep studying hard so that you can take care of us in old age!

Congratulations to GEJ for the POSITIVE things you done this year, millions thank you!

Congratulations to Tinubu and Buhari for making us an official TWO PARTY DEMOCRACY! Millions thank you!

Congratulations to all the performing state governors who provide conducive environment for business to thrive!

Congratulations to the police and army for putting their lives on the line to protect our valuables from bad belles!

Keep adding to the list!

We have lots of things to work on o! We are (very) far from perfect! So lets keep improving!

Let's keep it up in 2014.

.