₦airaland Forum

The Managing Director of the International Monetary Fund, Christine Lagarde, said on Tuesday in Abuja that the organisation was willing to assist the Federal Government of Nigeria in plugging revenue leakages, tracing stolen funds and restructuring the tax system.

She also said that Nigeria had all the potential to overcome the current economic challenge of falling commodity prices without resorting to the IMF for financial support.

Lagarde, who is in the country on a four-day working visit, reportedly said this during a closed-door meeting with President Muhammadu Buhari at the Presidential Villa, according to a statement by the President’s Special Adviser to the President on Media and Publicity, Mr. Femi Adesina.

Buhari, on his part, said he had told all heads of Ministries, Departments and Agencies of government that under his leadership, they must give full account of all funds allocated to them.

He said his administration would look inwards, enforce regulations to stop financial leakages and adopt global best practices in generating more revenue to mitigate the effects of dwindling oil prices on the Nigerian economy.

Adesina further quoted the President as saying that his administration would also enforce greater discipline, probity and accountability in all revenue generating agencies of the Federal Government.

Buhari reportedly told Lagarde, “We have just come out of budget discussions after many weeks of taking into consideration the many needs of the country and the downturn in 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.

“We have also told all heads of Ministries, Departments and Agencies of government that on our watch, they will fully account for all funds that get into their coffers.”

The President said that the Federal Government was reviewing its operational costs and had directed all the MDAs to cut down on their overheads.

According to him, the Federal Government will welcome the technical support and expertise of the IMF for its plans to diversify the Nigerian economy and further unleash its growth potential.

After her meeting with Buhari, the IMF boss said with the determination and resilience so far displayed by Buhari and his team, Nigeria did not need any loan from her organisation.

Lagarde said she was not in the country to negotiate loans with the Federal Government.

The IMF boss spoke with State House correspondents shortly after holding a closed-door meeting with Buhari; Vice President Yemi Osinbajo; and some key ministers inside the Presidential Villa, Abuja.

The meeting was also attended by the Minister of Finance, Kemi Adeosun; Minister of Budget and National Planning, Udo Udoma; Minister of Transportation, Rotimi Amaechi; and Minister of Works, Housing and Power, Babatunde Fashola, among others.

Lagarde said although Nigeria did not need IMF loans, fiscal discipline was needed for the country to be sustainable.

She said, “Let me make it clear that I am not here (in Nigeria) nor is my team in this country to negotiate a loan with conditionality. We are not into programme negotiations and frankly at this point in time, given the determination and resilience displayed by the President and his team, I don’t see why an IMF programme will be needed.

“So, of course, discipline is going to be needed; of course, implementation is going to be key for the objectives and the ambition to serve the country well in order for it to be actually sustainable.”

She said the IMF believed that with clear primary ambition to support poor Nigerians, there could be added flexibility in the monetary policy, particularly if the oil price slump continued for a longer period as expected.

She explained that the organisation’s position was that Nigeria should not deplete its reserves simply because of rules that would be exceedingly rigid.

While saying that she was not suggesting that rigidity should be totally eliminated, the IMF boss argued that some degree of flexibility would be enough.

Lagarde observed that since her last visit to Nigeria four years ago, the country had witnessed a number of changes in the areas of democracy and the economy.

She noted that Nigeria had become the largest economy in Africa and the most populated, with a very attractive market.

She, however, regretted that things had changed in a more complicated way in the sense that the source of revenue to the government, which was predominantly crude oil, had seen its price reduced by more than half.

The IMF boss also noted that the financing costs around were beginning to rise because the economic situation in the United States had improved and that interest rates would begin to rise.

On her meeting with Buhari, Lagarde said she and her team had excellent discussions with the President and that they discussed the challenges ahead for the economy stemming from oil price slump.

She said the meeting stressed the necessity to apply fiscal discipline and the need to also respond to the population needs, while addressing the medium term specificities of improving the competitiveness of Nigeria and also focusing on the short term fiscal situation.

This, she explained, required that new revenue sources be identified in order to compensate for the shortfall resulting from oil price decline.

Lagarde noted that as customary, a team of IMF economic experts would arrive the country next week to assess the 2016 budget of the Federal Government.

She said, “Oil is not the major contributor to the Nigerian GDP, it is only about 40 per cent; but it is a big source of revenue for the government.

“We discussed with the President, vice president and the ministers of Finance and Budget how more efficiency, more transparency, better accountability and enlarging the base of revenue could actually contribute to sound budgets going forward.


http://www.zubbyblog.com/imf-to-help-nigeria-trace-looted-funds

Cc lalasticlala

No. #fail. The IMF is here to put us in debt, advertise their service or issue a stern warning that we should ensure to always borrow from them in order to move ahead as a nation this trying 2016 period.

For our former colonial masters to send the IMF president and not a representative means water don pass garri -- the IMF is a machination to ensure poor countries remain poor and rich ones stay bountiful. Seeing us try to do without their biased policies is a slap on the face they're willing to go to the world's end to avoid.

Now we shall see the face of some of the cancerous diseases that has bleeped our beloved nation and sent it to jeopardy.
If found guilty they should all be executed.

I don't trust that woman, I don't trust IMF. well it can do nothing because the President don't trust my opinion either . Just the way I don't trust that woman came in holiday in Nigeria or because Baba of handsome.
her visit will not be far from Nigeria gradually closing her boarder to products from other nations. And to have first hand information on how long she can stand before buckling.
I hope Nigeria have the stamina to withstand their next devilish plans.

On what bases or policy? IMF is not a charity organisation but a colonialist(Bankesters). Nigeria is doomed!!!..

didn't we already hear this??

coolzeal:
On what bases or policy? IMF is not a charity organisation but a colonialist(Bankesters). Nigeria is doomed!!!..

really doomed