Business
Nigeria shuns IMF, seeks $2.3bn loans from W/Bank, China
For insisting that Nigeria must officially devalue its local currency, the naira, the Federal Government may have closed all intention of seeking for loan facilities from the International Monetary Fund.
The country has instead gone for a total loan package of $2.3 billion from the World Bank and China’s Export-Import Bank, according to the Finance Minister, Mrs. Kemi Adeosun.
Adeosun, who disclosed this to a foreign news network, on Tuesday, said the “Federal Government was hoping to sign in the next few months a loan worth $1.3 billion from China’s Export-Import Bank to fund railway projects and another $1 billion from the World Bank.”
The minister, confirmed that from all indications, there was no need to apply for an IMF loan as the government was pursuing its own economic reform plan.
Nigeria’s economy had fallen into deep recession, its worst record in more than 25 years, prompted largely by a steep decline in foreign exchange earnings triggered by fallen price of crude oil and low oil production levels.
This has prompted suggestions that the country may need the IMF funding to cover a growing budget deficit.
Read Also: FG, states, LGs share higher revenue from federation account for January
According to Adeosun: “For us, the IMF is really a lender of last resort when you have balance of payments problem. Nigeria doesn’t have balance of payments problems per se; it has a fiscal problem.
Adeosun said “We are already doing as much reform as any IMF programme would impose on Nigeria. Nigerians want to take responsibility for their future. We must have our home-grown, home-designed programme of reform.”
The minister stated that non-oil revenues were improving while the government was fine-tuning an economic reform plan needed to support an application for a loan of at least $1 billion from the World Bank.
She said Nigeria is still seeking further funds from the African Development Bank, adding that with non-oil revenue improving steadily, all measures put in place were beginning to yield fruits.
“Oil production is back up; we are very grateful for that, but we should be careful for getting excited about that.
“The country needs to plug a gap in its record of $23.17bn 2017 budget proposal, which contains a number of measures aimed at stimulating the economy,” she said.
The Federal Government will also present its economic proposal to the African Development Bank to help release a second loan tranche worth $400m to support the budget, officials have said.
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Roland Uchendu Pele
February 22, 2017 at 10:01 am
Nigeria’s dependence on oil is not something we will get over with soon. This crude oil we have in Nigeria seems to be more of a curse than a blessing. There is no such thing as diversification of the economy, Mrs. Adeosun should do her best and leave the rest.
Animashaun Ayodeji
February 22, 2017 at 11:11 am
As long as oil remains the biggest means of generating income for Nigeria, we’ll keep depending on it while we grow other sectors, this is what this administration has been doing. No sector is neglected, Buhari’s administration is not even depending on oilblike the previous administrations
yanju omotodun
February 22, 2017 at 3:22 pm
Naso. You are not current. Oil is to generate 40% of national income to finance our 2017 budget, I remembered we are relying on #1.4 trillion on crude oil, and you say buhari government is not relying on oil. So what other sectors are working?
Margret Dickson
February 22, 2017 at 11:02 am
It was good we made left IMF, their terms are too much and Nigeria needs to be in charge of her own economy without subjecting to IMF. Smart move from Adeosun there
seyi jelili
February 22, 2017 at 12:36 pm
Can’t we try to do away totally from imf and even world Bank itself because they are both colonial Banks trying to colonize us again leveraging on economic policies.
yanju omotodun
February 22, 2017 at 3:19 pm
Hmmmm. Just that we can’t survive without these colonial financial institutions no matter how hard we try. Even the US, UK and other bigger countries do borrow from these institutions.
Balarabe musa
February 22, 2017 at 4:34 pm
But I thought we were said to be dwindling in our relationship with China recently now, we are turning to them for loan. I think we need to be cautious with China as well. They are very cunning too so that they wont champion our economy and make us slaves to them.