How to achieve sustainable growth in Nigeria, others
FOR Nigeria and other African economies to achieve sustainable growth this year, with the phenomenal plummeting fortunes of commodity prices, they need to effect prompt fiscal adjustments to reduce pangs of downside risks.
This conclusion was reached by the African Consultative Group at the just concluded World Bank/ International Monetary Fund (IMF) Spring Meetings in Washington DC, U.S.A.
Meanwhile, Nigeria’s Coordinating Minister of Economy, Dr Okonjo-Iweala,on the sidelines of the meetings, affirmed robust economic profile of the nation’s economy, even as she denied knowledge of the N2 trillion campaign fund saga.
The regional group, at the meeting headed by the Chairman of the African Caucus, Armando Manuel and co-chaired by the Managing Director of IMF, Ms Christine Lagarde, however noted that the economic outlook for the continent remains promising, with economic activity generally projected to increase at a rate of four per cent this year, “in an environment of continued moderate inflation.”
Specifically, the group prescribed that Nigeria and other oil importing countries should “reduce costly energy subsidies and create the fiscal space to support their development objectives.”
Besides, the group pointed out that “access to funding could become more challenging as the United States unwinds its conventional monetary policy.
“Going forward, as we seek to achieve the sustainable development goals, we agreed that it will be important for governments to maintain macroeconomic stability; strengthen institutions and the business environment; address critical infrastructural gaps; expand access to financial services in our economies; and seek to ensure that growth is both broad-based and inclusive.”
Lagarde, in her closing remark at the meeting, said: “The IMF will remain closely engaged with our African members, supporting them with financial resources and technical advice as needed.
“In particular, we will continue devoting resources to assist North African countries in transition and fragile states to ensure economic stability and resilience. At the same time, the Fund will continue to strengthen the analytical underpinnings of its policy advice and instruments, and seek to adapt its policies to the evolving needs of the membership.”
Okonjo-Iweala disclosed that the Federal Government has established infrastructural framework to build Nigeria’s economy on a sustainable basis.
According to her, the administration’s economic diversification programme is on course and the real sector in particular is being strategically focused on to promote the well-being of Nigerians and the economy.
She pointed out that access to fund has been improved upon for real sector operators and the outlook looks bright with the establishment of the Development Bank and the strengthening of the existing financial institutions.
he Deputy Governor of Central Bank of Nigeria, Dr Sarah Alade affirmed that the nation’s financial institutions have become robust and resilient enough to contribute their quota to the development and growth of the economy.
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5 Comments
Why do Nigerian public officeholders like to use verbose and
meaningless phrases? Phrases like
“international best practices”. And now, this one, “robust”. ” Affirmed robust
economic profile of the nation’s economy”, “robust and resilient enough”. These are combative colloquialism in
expression. In the field of finance, banking and economics, figures are what matters. Analysis should be
in the quantitative and not qualitative treatise. When you say “robust economic
profile” you should support it with macroeconomic indices. What
are the figures for the GDP, unemployment,
inflation etc.? Banking of course is the most analysable sector. Again, “robust and resilient enough “is pure Nigerian grammar. Tell us of their contribution to the real economy. What is their capital structure like? What is their asset (loans) structure like? What is the risk quantum they carry? When you read their financial statements, all you see is grammar, definitions and lecture notes all copied without references. Investors and analysts want to see figures. Period. Banks in Nigeria are mere traders. They are lazy. They do not really need to do anything. By putting their money in CBN, buying government gilts instruments at very an unexplainable rates of 12% to 15% they home and dry. These Cash and Carry bankers only give short term loans at very prohibitive interest rates to importers of cheap products. They then send their staff to Oyingbo, Alaba and whatever markets to supervise the traders who in turn handover their daily sales to them.. Let’s
start to do proper banking.
As a banker,I feel really ashamed at the illiteracy and lack of innovative skills in terms of product development in the Nigerian banking system. And they do not want to learn. High sounding and warn out clichés do not impress investors at all. Figures do. Integrity does. Corporate governance and rule of law do. Hopefully,the incoming administration will create the enabling environment for business.
Hi
Thank you IMF. Please show us one country the IMF has helped to develop within the last 30 years and we will believe you. If China had listened to the IMF, China would still be a poor country today. No one invited the IMF, they keep pushing and pushing into Nigeria. Go away. You are like a bad case of head lice.
IMF BROUGHT US TO THIS NO SENSE ECONOMIC SITUATION, SINCE THE TIME IBB TOOK IMF LOAN, NO COUNTRY HAS EVER DEVELOPED BECAUSE OF IMF ASSISTANCE. THERE ARE OTHER FINANCIAL INSTITUTION LIKE ISLAMIC BANK THAT NO INTEREST ATTACHMENT THAT MAY IMPROVE OUR ECONOMY. WITH SERIOUSNESS TO CURB CORRUPTION AND UNNECESSARY SPENDING WE MAY NOT NEED LOAN TO DEVELOP. MORE OIL EXPLORATION ACTIVITIES IN THE NORTH EAST AND DEVELOPMENT OF AJAOKUTA STEEL INDUSTRIES, AGRICULTURAL INDUSTRIES, POWER SECTOR, MARITIME INDUSTRY, WE ARE MOST LIKELY TO HAVE SUSTAINABLE ECONOMY
The in-coming administration would do itself and the Nigerian voters a world of good to take the IMF advice with a large pinch of salt. The economic turmoil in Spain, Italy and most recently Greece points to the futility of the IMF’s one-size-fits-all panacea. Perhaps the outgoing Minister’s minster NOI’s policies say it all. We have adopted, adjusted and readied and yet when oil prices collapsed the Nigerian economy simply fizzled out!
We will review and take appropriate action.