Tag: IMF

Nigeria loses title as Africa’s largest economy, slips to 4th place – IMF

Aminu Imam
Lagos Marina

Nigeria’s economy has lost its title as the Africa’s largest economy as it slipped to fourth place behind South Africa, Egypt, and Algeria. This is according to a recent forecast by the International Monetary Fund, (IMF). Accordingly, the Washington-based bank World Economic Outlook estimates Nigeria’s gross domestic product at $253 billion based on current prices this year, lagging behind Algeria at $267 billion, Egypt at $348 billion, and South Africa at $373 billion. ?Africa’s most industrialised nation (South Africa) will remain the continent’s largest economy until Egypt reclaims the mantle…

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Naira to slump further to N2, 081/$1 in official market – IMF

Aminu Imam

The International Monetary Fund (IMF) has projected that the nation’s currency, the Naira, may further depreciate by about 35% to the dollar this year, which according to it, could lead to inflation rate peaking at 44% before the monetary policy tightening could bring the situation under control. The Bretton Woods institution, which disclosed this in its February ‘2024 Post–Financing Assessment and Staff Report‘,  noted that Nigeria’s monetary policy is currently insufficiently tightened to bring inflation below 20%, while pressures on the Naira persist. The report said that amid the absence…

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“No blanket debt cancellation for Nigeria, Ghana, other African economies” – IMF

Aminu Imam

The International Monetary Fund (IMF) has dismissed the possibility of total debt cancellation for Nigeria, Ghana, and other African economies. Speaking during the African Session, at the ongoing IMF/World Bank Annual Meetings, in Marrakech, Morocco, IMF African Department Director, Abebe Selassie said 50 percent of total debts in sub-Saharan countries are domestic, making debt forgiveness difficult. Recall that the Debt Management Office (DMO) data showed that Nigeria has a total debt stock of $113.4 billion as of June 30, 2023. Selassie, who spoke on the theme: “In Pursuit of Stronger…

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IMF: Insecurity will slow Nigeria’s growth

Aminu Imam

The International Monetary Fund, (IMF), has estimated that Nigeria’s economic growth will decline in 2023 and 2024 due to security issues in the oil sector. According to IMF, the country’s economy would grow at 3.2 percent in 2023, before declining to 3.0 percent in 2024. The IMF disclosed this in its latest ‘World Economic Outlook Update: Near-Term Resilience, Persistent Challenges (July 2023)’ report. According to the report, Nigeria’s growth is below projections for the sub-Saharan African region, which is expected to grow by 3.5 percent in 2023 and 4.1 percent…

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Fuel Subsidy: IMF raises doubt over NNPC’s 66m litres daily fuel consumption claim

Aminu Imam

The International Monetary Fund (IMF) has raised doubts on the reported volumes of fuel consumed in Nigeria, calling for a proper audit of the financials of the state-owned oil company – the Nigerian National Petroleum Company (NNPC) Limited. In its latest 2022 Article-4 Mission in Nigeria yesterday, the IMF raised concerns of very poor revenue mobilisation amid huge subsidies, and therefore warned that fiscal transparency remained critical for a sound fiscal policy for Africa’s largest economy. Apart from the IMF, there have been similar doubts around NNPCL’s latest figures which…

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Nigeria, others face high risk of debt distress – IMF cautions

Aminu Imam

The International Monetary Fund (IMF), has warned that Nigeria and 71 other countries are at high risk of debt distress or already in debt distress. The Bretton Woods institution, which disclosed this in a report titled: “Restructuring debt of poorer nations requires more efficient coordination”, said that low-income countries face fewer debt challenges today than they did 25 years ago. This, it attributed to the Heavily Indebted Poor Countries (HIPC) initiative, which slashed unmanageable debt burdens across sub-Saharan Africa and other regions. According to the report, although debt ratios were…

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Fear of political resistance, corruption hampering subsidy removal in Nigeria – IMF

Aminu Imam

The International Monetary Fund, (IMF), has disclosed that the fear of political resistance, widespread corruption and pressure from interested groups is hampering the removal of the fuel subsidy in Nigeria. The IMF said this in its ‘Nigeria: Selected Issues Paper’ report, which was prepared by a staff team of the Fund as background documentation for its periodic consultation with Nigeria. The report read in part: “This fuel subsidy has taken up considerable (explicit or implicit) budget costs, constituting inefficient use of resources that could have been spent more effectively on…

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‘Remove fuel, electricity subsidies early 2022’, IMF tells FG

Aminu Imam

…Says perception of corruption remains high The International Monetary Fund, (IMF), has called for the complete removal of fuel and electricity subsidies in Nigeria early next year. In the concluding statement of its 2021 Article IV Mission published on Friday, the Bretton Woods institution said the implementation of cost-reflective electricity tariffs as of January 2022 should not be delayed. The IMF urged the Federal Government to implement revenue-based fiscal consolidation in the country. Nigeria, according to it, needs major reforms in fiscal, exchange rate, trade, and governance to promote sustainable…

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FG awaits its share, as IMF begins distribution of $650bn SDRs

Aminu Imam

Nigeria together with other developing countries are expected to share $275 billion out of the International Monetary Fund’s (IMF) $650 billion Special Drawing Rights (SDRs). Nigeria is currently entitled to receive about $3.35 billion as its share of the SDR fund. Ms. Kristalina Georgieva, IMF’s Managing Director, said this in a statement on Monday, in Washington DC, while announcing the commencement of the distribution of the SDR. According to her, of the $275 billion, low-income countries will receive about $21 billion, which is equivalent to as much as six percent…

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Eminent Nigerians warn World Bank, IMF, EU, others against granting loans to Nigeria

Aminu Imam

Prominent statesmen and leaders of thought yesterday warned the international community against lending the Nigerian Government any foreign loans, stating that Nigeria is now a country with questionable sovereignty. The Nigerians, numbering 129, were signatories to the Constitutional Force Majeure (CFM), declared on December 16 2020 on Nigeria’s 1999 Constitution. Notable among the leaders are former Nigeria’s military vice-president, Commodore Ebitu Ukiwe (rtd), former Plateau State go, Jonah Jang, renowned historian and Second Republic member of the Senate, Banji Akintoye; former President-General of Ohanaeze Ndigbo, Chief Nnia Nwodo; respected varsity…

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