International Monetary Fund (IMF) Managing Director, Ms. Christine Lagarde is on a scheduled visit to Nigeria to discuss with President Muhammadu Buhari and several stakeholders to proffer solutions to the country’s economic challenges. The visit, which will take place between the 4th and 7th of January 2016, will focus on discussing ways of boosting the economy which experts have said is showing signs of distress orchestrated by the falling oil prices. While Christine Lagarde’s visit is ongoing, here are a few key areas Nigerians can expect to be focused on during her second visit to the country.

Economic Diversification

As the main focus of the visit is on the economy, the IMF team may be interested in sharing ideas on how Nigeria can improve its economy by shifting attention to other resources besides crude oil. Although many experts have called for Nigeria to focus less on oil and more on natural resources in order to revive the economy, very few steps have been taken to actualize the goal. The new minister of natural resources, Kayode Fayemi, has been called on to take certain steps on improving the sector. In December, Fayemi said, that he is committed to ensuring the Nigerian economy benefits from the sector within a decade. According to ThisDay, the minister has pledged to focus on employment, block existing leakages to shore up revenue generation and build an industry that would support the country’s industrialization and become sustainable, transparent and environmental friendly.

Advocating for reduction on public spending

Last year, Christine Lagarde alerted the Nigerian government on public spending, advocating the removal of the fuel subsidy. “On the issue of the eight African countries that are oil exporters, some of which actually benefit as a result of dollars appreciation, you get dollar pricing for the oil you export and sometimes this helps to cushion the decline in oil pricing. But the point must also be made that some of these countries also acquire loans which are dollar denominated. They have to try to be cautious with public spending. We will still recommend that any subsidy that is being paid out on physical resources be phased out to the possible maximum extent. This is already happening in Nigeria, but more still need to be done, as quickly as possible, especially if it is not being engaged in sectors of the economy where they are not being done”, Lagarde said at the time.


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