Tag: IMF

  • Imf and World Bank as  patrons of poverty in Africa?

    Imf and World Bank as patrons of poverty in Africa?

    The straightforward thesis of the slim but powerful new book published last year by the Lagos State University (LASU) – based political economist, Dr Sylvester Odion Akhaine, is vividly captured by its graphic title – ‘Patrons of Poverty: IMF/World Bank and Africa’s Problems’. Published in Germany by LAMBERT Academic Publishing, the book runs into a little over a hundred pages divided into five simple and readable but tightly structured chapters. The thrust of his argument is that in our globalised world characterised by information technology revolutions and capital flows volatility, the International Monetary Fund (IMF) and World Bank, through their policies and activities, “have continuously relegated African economies to the backwaters”.

    He contends that Africa’s protracted crisis of perennial underdevelopment can only be properly explicated and understood within the historical purview of the tragic incidences of slavery, colonialism and contemporary neo-colonialism as represented particularly by the policies imposed on the continent by hegemonic International Financial Institutions (IFI) like the IMF and the World Bank.

    Many would contend that this is a tired and tortured argument that treads the worn path earlier charted by such radical scholars as Walter Rodney, Bade Onimode, Samir Amin, Claude Ake, Adebayo Olukoshi and scores of other radically inclined African intellectuals. Those who hold this view say that it only constitutes an attempt by Africans to evade responsibility for the plight of their blighted continent over five decades after the termination of formal colonial rule. Yet, the veracity of this position cannot be credibly refuted. It is impossible to comprehend Africa’s dire, desperate and dismal present without reference to her traumatic, disturbed and turbulent past.

    In a press statement issued at the Action Group Federal Headquarters, Lagos, on 28th June, 1961, the foremost Nigerian statesman and politician, Chief Obafemi Awolowo, made this point with characteristic pungency. “From the beginning of recorded history” he declared, “the black man has been the most conspicuous butt of all manner of inhuman treatment. In the palaces of the Arabian Potentates – both in the Middle East and in North Africa – he was degraded and enslaved. When the so-called ‘Dark Continent of Africa’ was discovered the European marauders hunted him down like a common beast, captured him, and sold him into slavery in the Americas and the West Indies. The era of trading in, and of enforcing the services of black slaves, terminated only to be replaced by the European Powers, which initiated it with a legalized form of political and economic enslavement of the entire peoples of the Continent of Africa…For more than sixty years thereafter, black Africa suffered under the grinding heels of alien conquerors and settlers”.

    Dr Akhaine has done Africans a great service by simplifying and making more accessible to a wider audience the ideas of earlier seminal scholars on the crisis of poverty and underdevelopment in Africa. As he puts it “The continent has no independent policies; it is continuously guided by transferred policies of leading global powers that are desirous of maintaining vertical relations of dominance between them and the dominant countries”.  In chapter two of his book, the author undertakes an overview of the current pathetic and dehumanising position of Africa in the global political economy. He traces the roots of underdevelopment in Africa to the brutal eras of slavery and colonialism as well as the continuation by conniving African leadership elite that pursue pro-imperialist policies, which only lead to further submergence of the continent in the miry clay of underdevelopment.

    In this regard, Akhaine disagrees vehemently with the school of thought, which states that the slave trade was actually of benefit to Africa. According to this school of thought, slavery resulted in increased prosperity of such pre-colonial states as Dahomey, Benin and Oyo and that slavery served as a form of population control to avoid famine. In addition to these, the pro-slave trade school of thought believes that apart from helping to introduce into Africa new crops such as maize and cassava, slavery rescued the slave victims from poverty in Africa to more affluent lives in European and American destinations.  Countering these racially jaundiced perspectives, Akhaine points out that the slave trade, which lasted approximately three centuries, actually had a negative and catastrophic effect on population growth in Africa, deprived the continent of the more productive and vigorous sections of their populations while also causing a severe dislocation of Africa’s local economies as a result of intra-African slavery wars.

    In the same vein, Akhaine contends, colonialism had a deleterious and retardation effect on African economies. The colonial administration forced Africans to produce so called cash crops as well as mine mineral resources for the benefit of the colonial economy. This led to a distortion and disarticulation of African economies, a distortion they are yet to recover from till date. Again, colonialism discouraged capital goods production such as equipment and machinery in the colonies thus inhibiting the capacity of these colonies for meaningful domestic capital formation.

    In this chapter, Akhaine asks why and at what stage Africa became synonymous with chronic dependency and pervasive underdevelopment. He points out that Africa was in reality economically self-sufficient before the continent’s encounter with the forces of slavery and colonialism. In his words “the present crop of African leaders need to know that the continent’s conditions were not always as it is; its people once dominated and tamed their environment; they never had unemployment; they produced what they consumed and had food surpluses and that in the context of the prevailing global constraints these feats are still possible”.

    Not only was Africa self-sufficient in food production in contrast to today’s dependency, the continent had taken impressive strides in industries such as cloth-making, iron smelting and soap making among others. These products, he says, had as far back as the 17th century, penetrated European markets especially the Iberian Peninsula.  It was thus the brutal encounter with slavery and colonial imperialism that effectively arrested the self-reliant economic and technological development of Africa.

    Of course, Dr Akhaine does not shy away from confronting the roles which corrupt and tyrannical post-colonial African leadership elite – Idi Amin, Mobutu Sese Soko, Marcia Nguema, Sani Abacha, Robert Mugabe etc – played in looting, exploiting and perpetrating the worst human rights atrocities in their countries. He, however, makes the point that the emergence and perpetuation in power of this perverse post-colonial leadership could not be divorced from the machinations of the colonial imperialists. This point is buttressed by the implication of the advanced imperial countries in the undermining and elimination of patriotic and progressive African leaders such as Kwame Nkrumah, Patrice Lumumba, Samora Machel, Thomas Sankara or Murtala Muhammed who were genuinely committed to the liberation of the continent and the actualisation of her potentials.

  • Fed Govt, IMF differ on foreign exchange mgt

    Fed Govt, IMF differ on foreign exchange mgt

    • Support for power, housing, other reforms

    The International Monetary Fund (IMF) has stressed the need to allow the naira/dollar exchange rate to be determined by market forces, if the economy must grow and enjoy some stability.

    In its report chronicling the outcome of its Team visit, led by Gene Leon, to Nigeria from December 14-17,last year  and January 10–25 this year, the IMF said: “Eliminating existing macroeconomic imbalances and achieving sustained private sector-led growth requires a renewed focus on ensuring the competitiveness of the economy. As part of a credible package of policies, the exchange rate should be allowed to reflect market forces more and restrictions on access to foreign exchange removed, while improving the functioning of the interbank foreign exchange market (IFEM).

    “ It will be important for the regulatory and supervisory frameworks to ensure a strong and resilient financial sector that can support private sector investment across production segments (including SMEs) at reasonable financing costs,” the report added.

    As opposed to the IMF position, the Federal Government has continued to insist on defending the naira with the nation’s foreign reserves, warding off suggestions to devalue the local currency.

    The global financial body, however, agreed with the authority’s ongoing efforts to promote targeted and core infrastructure, especially in the power and  integrated transport network and housing. It called for a reduction in the cost of doing business, “through greater transparency and accountability,” as well as  promote employment of youth and the female populations.

    The IMF called for what it termed, “steadfast implementation of structural reforms,” and as well adopt a sound Petroleum Industry Bill, including the application of the Anti-Money Laundering/Combating the Financing of Terrorism framework, which it pointed out, will help strengthen the regulatory framework for the oil sector.

    Emphasis, the global body said, “should be sustained on doing ‘more with less’ to improve the efficiency of public sector service delivery and create an enabling environment to attract investment.”

    The report attributed Nigeria’s present predicament to the sharp decline in oil prices, a situation made worse by its dependence on oil revenues. It said the general government deficit doubled to about 3.3 per cent of the Gross Domestic Product (GDP)  in 2015, despite a sharp reduction in public investment.

    According to the report, the nation’s exports dropped  by about 40 per cent, pushing the current account deficit to an estimated 2.4 per cent of GDP, adding that with foreign portfolio flows slowing significantly, “reserves fell to $28.3 billion at end-2015.”

    The IMF stated that foreign exchange restrictions introduced by the Central Bank of Nigeria (CBN) to protect reserves have impacted significantly segments of the private sector that depend on supply of foreign currencies. Coupled with fuel shortages in the first half of the year and lower investor confidence, growth is estimated to have slowed to 2.8 percent in 2015 (from 6.3 percent in 2014), weakening corporate balance sheets, lowering the resilience of the banking system, and likely reversing progress in reducing unemployment and poverty.

  • IMF approves new access lending framework

    IMF approves new access lending framework

    Director of Communications at the International Monetary Fund (IMF), Gerry Rice, has said the Executive Board has approved an important reform to the Fund’s exceptional access lending framework.

    The framework also includes the removal of the systemic exemption that was introduced in 2010. He said the objective of this reform is to better calibrate IMF lending decisions to members’ debt vulnerabilities, while avoiding unnecessary costs for the members, their creditors, and the overall system. In developing the reform proposals, IMF staff conducted extensive consultations with key stakeholders, including market participants.

    “The reforms are a central component of the IMF’s work on preventing and more efficiently resolving sovereign debt crises. The IMF launched a four-pronged work program on sovereign debt restructuring in 2013. Two of the four components of this work stream have already been completed: on strengthening the contractual framework to address collective action problems (October 2014) and on reforming the IMF’s policy on the non-toleration of arrears to official creditors (December 2015),” he said.

  • IMF predicts 3.4% growth  in 2016

    IMF predicts 3.4% growth in 2016

    The International Monetary Fund (IMF) has projected 3.4 per cent global economic growth for 2016, indicating an increase of 0.3per cent over last year’s growth rate of 3.1per cent.

    The World financial body has equally forecast a growth rate of 3.6per cent for 2017, pointing out that the pickup in global activity is projected to be more gradual than its forecast of last October, 2015 World Economic Outlook.

    It said these projections are primarily for emerging market and developing economies.

    The report, which was released yesterday in London and Washington DC, painted a slightly different outlook for developed economies, saying recovery is expected to be modest and uneven.

    “In advanced economies, a modest and uneven recovery is expected to continue, with a gradual further narrowing of output gaps, the IMF said, adding that the picture for emerging market and developing economies is diverse, but in many cases challenging.

    It said however, that most countries in sub-Saharan Africa, will see a gradual pickup in growth, saying with lower commodity prices, to rates that are lower than those seen over the past decade, this mainly reflects the continued adjustment to lower commodity prices and higher borrowing costs, which are weighing heavily on some of the region’s largest economies, including Nigeria,  Angola  and South Africa,  as well as a number of smaller commodity exporters.

    The IMF also revised downward by 0.2 percentage point overall forecasts for global growth for both 2016 and 2017, stating that these revisions reflect, to a substantial degree, “but not exclusively, a weaker pickup in emerging economies than was forecast in October.

    In terms of the country composition, it said, the revisions are largely accounted for by Brazil, where it linked the development to the recession caused by political uncertainty amid continued fallout from the Petrobras investigation, which it pointed out, is proving to be deeper and more protracted than previously expected.

    It warned that unless the key transitions in the world economy are successfully navigated, global growth could be derailed. It said unless the  downside risks,  such as the slowdown and rebalancing of the Chinese economy, lower commodity prices and strains in some large emerging market economies, are addressed, they will continue to weigh on growth prospects in 2016–17.

  • IMF: ‘I’ for interlopers…

    The truth is that the International Monetary Fund (IMF) is much detested around here. This is why anything to do with this Western world money house often triggers irritation and much revulsion among the critical populace. Wetin IMF dey do sef may well be the new refrain as their roles in world economy, especially as concerns developing countries, seem very circumspect today.

    The recent visit of IMF’s chief to Nigeria may therefore have been received with such animus and ill-will. Hardball must confess that what  irks always is IMF’s know-it-all attitude and the attempt to pass down solutions to countries like Nigeria as if her leaders are stupid. (And even if perchance they happen to be, need IMF rub it in?). Would IMF visit any Western European country and openly dictate economic policies and directions?

    During her visit recently, Christine Lagarde, managing director of IMF, did not disappoint. She played the part of an oracle as usual, postulating and pontificating. Let’s take excerpts:

    “The new reality of low oil prices and low oil revenues means that the fiscal challenge facing government is no longer about how to divide the proceeds of Nigeria’s oil wealth… This means that hard decisions will need to be taken on revenue, expenditure, debt and investment going forward. My policy refrain is this: by stepping up revenue mobilisation. The first step is to broaden the tax base and reduce leakages by improving compliance and enhancing collection efficiency.

    “At the same time, public finances can be bolstered further to meet the huge expenditure needs. For example, the current VAT rate is among the lowest in the world and well below the rates in other ECOWAS member-countries, so increase should be considered.”

    Hardball is piqued by Lagarde’s economic homily for several reasons. First, the tone of it is downright disrespectful, imperious and authoritarian. She passes down orders, almost forgetting that Nigeria is a sovereign nation.

    Second, though there may be merit in some of her suggestions, she has not said anything we did not know. But more worrisome is her recommendations for all sorts of punitive economic solutions that are inimical to the people. She orders the removal of petrol subsidy; she urges tax raise and an increase in VAT all in one fell swoop.

    It is particularly troubling that IMF’s remedies never seem to work anywhere (at least not in Nigeria, yet they are quick to proffer them). IMF must someday admit that it does not really understand the complexities of most developing economies.

    One often wonders why IMF is always compelled to come around only in troubled times. If it had been alive to its assumed duties of being the economic watchdog of the world, it would have visited about five years ago when the country was in boom. It would have insisted that the leaders of that time invested in critical infrastructure that would have curtailed dumping of Western junks on developing countries.

    Finally, Hardball expected a word from Lagarde about Nigeria’s immediate need for refineries and investment in agric. Did I hear any word on huge funds stolen from Nigeria and Africa and stashed in Western vaults? IMF must speak up and see to the urgent repatriation of these ‘blood’ monies.

  • IMF loan versus technical support

    Not a few Nigerians might have gotten goose pimples when the news hit the airwaves that the Managing Director of the International Monetary Fund  (IMF), Ms. Christine Lagarde, was coming to Nigeria.

    Before the news broke out, there was downturn in Nigeria’s economy due to persistent fall in oil prices in the international market.

    Nigeria, which has, over the years, mainly depended on crude oil revenue, was being threatened by the oil prices that crashed from over $100 per barrel to about $34 per barrel as at mid-last week.

    The dwindling revenue has also adversely affected projections in the Federal Government’s 2016 Budget proposal currently before the National Assembly.

    Since its inception, the IMF has played major roles in the financial crises of some of its member nations, especially the oil shock of the 1970s and the debt crisis of the 1980s, which resulted in sharp increases in IMF lending.

    In the 1990s, the transition process in Central and Eastern Europe and the crises in emerging market economies led to further increases in the demand for IMF loans.

    Deep crises in Latin America and Turkey kept demand for IMF loans high in the early 2000s while IMF lending also rose in the late 2008 in the wake of the global financial crisis.

    The N6.08 trillion 2016 Budget proposal presented by President Muhammadu Buhari last month, which tends toward deficit, according to the Minister of Budget and National Planning, Udoma Udo-Udoma, will be partly funded by improved taxes management and loans.

    Speaking with State House correspondents on how 2016 Budget will be funded after the Federal Executive Council (FEC) meeting approved the Medium-Term Expenditure Framework (MTEF) last month, Udo-Udoma said: “We will get the funding from two sources. We are looking at increasing our non-oil revenue; we are trying to get more money from the various government agencies, policing their collection and trying to get more money from them.

    “We will also look at keeping down our recurrent budget, which means we are looking at savings that we can make from overheads.

    “We will look at the efficiencies from our revenue collecting agencies such as the Federal Inland Revenue Service (FIRS), in terms of company income tax, in terms of Value Added Tax (VAT), and then the difference, we will have to borrow.

    “But the level of borrowing that we anticipate and we are projecting will be well within the maximum that we allow, which is three per cent of the Gross Domestic Product (GDP), because we want a prudent budget, we want a credible budget. So, we are working on that now.”

    Probably because the minister did not specify then whether the borrowing will be within the country or from outside the country, those Nigerians alarmed by Lagarde’s visit to Nigeria likely linked the visit to moves for Nigeria to access IMF loan.

    Their fears were aggravated by the past sad stories of some developing countries that had problems in repaying such loans and meeting IMF conditionality.

    Allaying the fears after meeting President Buhari at the Presidential Villa, Abuja last Tuesday Lagarde categorically declared that she was not in Nigeria to negotiate for IMF loan for the country.

    Stressing that her visit was routine and centred on technical discussions, she said: “Our technical discussions will continue and to those of you who wonder why the IMF Director is visiting Nigeria, it is precisely to discuss these new objectives, these reforms agenda that have been identified and supported by the President and also to appreciate the impact that it will have on neighbouring countries because

    when a country large as Nigeria, anything that it decides, any hardship that it faces will have consequences around it and that is what our research and analytical work is demonstrating.”

    With the determination and resilience by President Buhari and his team, she noted that Nigeria does not currently need IMF programme.

    Despite her remarks, some doubting Thomases feared that the matter may become like the popular Nigeria’s saying “the more you look, the less you see.”

    But the President, in a statement by his Special Adviser on Media and Publicity, Femi Adesina, has helped to throw more light on the discussions at the closed-door meeting.

    As if fore-closing any idea of IMF loan, the statement said the President, during the meeting, told Lagarde that Nigeria will look inward to overcome its economic challenges.

    The President, however, said his administration will welcome technical support and expertise of the IMF on plans to diversify the Nigerian economy.

    Nigeria, definitely, cannot afford any facility that will worsen its economic situation in the long run.

     

    Tougher times for MDAs

     

    Tougher times appear to be awaiting government’s revenue generating ministries, departments and agencies (MDAs).

    Dictates of the current economic realities will not allow businesses to be conducted ‘as usual’ in the MDAs.

    Before now, the government agencies whose salaries, overheads and capital expenditure are paid by the Federal Government were expected to generate operating surplus and credit 80 per cent of the income to the Consolidated Revenue Fund (CRF).

    But the government has discovered that many of the agencies have never credited anything to the CRF and never generated any operating surplus.

    To this end, the government has announced measures to strictly monitor the MDAs in the face of the falling oil prices in the international market towards plugging leakages and boosting government revenues.

    Apart from those generating revenues in dollar now to be made to remit same to the government in dollar denomination, free spending of incomes have also been stopped.

    As part of the decisions taken at last Wednesday’s Federal Executive Council (FEC) meeting, the government also has set up efficiency unit to look into how money is spent and the savings.

    The MDAs will now have to submit budget for approval before spending any revenue generated.

    The ministers supervising such revenue generating boards were also reminded during the last FEC meeting of their responsibilities in the matter under the Fiscal Responsibility Act (FRA).

    Strategies should be put in place now to check any new ways the civil servants and their heads could exploit to beat the new order.

    It is hoped that government’s new moves along with other measures will help to sanitise the system, provide more revenue for 2016 Budget and reshape the Nigerian economy.

    Nigerians on the streets, no doubt, have no business with suffering given the natural and human resources God has endowed the country with.

  • IMF spoke some truths to Nigeria

    SIR: You don’t have to agree with everything said by the Managing Director of the International Monetary Fund, IMF, Christine Lagarde, but she has said a lot to indicate that she knows Nigeria and her economy in-and-out. She said Nigeria since inception recorded the slowest pace of growth in the year 2015.

    Some of her words in marble were: “I see an immediate priority—a fundamental change in the way government operates”, because “The new reality of low oil prices and low oil revenues means that the fiscal challenge facing government is no longer about how to divide the proceeds of Nigeria’s oil wealth, but what needs to be done so that Nigeria can deliver to its people the public services they deserve—be it in education, health or infrastructure.”

    On war with Boko Haram, Lagarde expressed my conviction: “terrorism not only takes a human toll but it also makes public finances more fragile. How? By widening budget deficits. Revenues are lower, including from lower growth, and spending needs higher, including for security and for supporting those impacted by the violence. One immediate downside is higher financing needs that can crowd out other essential public spending.”

    Another area of serious concern to Lagarde is fuel: “fuel subsidies are hard to defend, particularly in Nigeria – think of the regular accusations of corruption, and think of the many Nigerians who spend hours in queues trying to get gas (petrol) so that they can go about their everyday business.”

    President Buhari may be recovering looted funds, but we await his measures for fighting corruption in the ministries and parastatals. Nigerians want efficiency and accountability, and the rulers, including the Governor of the Central Bank, to embrace austerity measures in their budgets.

     

    • Pius Oyeniran Abioje, PhD,

    University of Ilorin.

  • Watch your  borrowing, IMF advises govt

    Watch your borrowing, IMF advises govt

    The International Monetary Fund (IMF) has advised the Federal Government to be careful with its borrowing plans.

    A statement issued yesterday by the Managing Director of the IMF, Ms Christine Largarde, at the end of her visit to Nigeria urged the Federal Government to identify ways to broaden the revenue base, particularly to create additional fiscal space to offset the impact of lower oil prices.

    Largarde advised the government on the “need for careful decisions on borrowing, public spending, and managing the cost of fuel subsidies – with a view to safeguarding priority social sectors and the most vulnerable groups.”

    She added that the country “will require a package of measures involving business-friendly monetary policy, flexible exchange rate policy, and disciplined fiscal policy, and the implementation of structural reforms.”

    Ms Largarde “complimented the authorities on their efforts to address corruption, particularly the decision to publish monthly data on the finances and operations of the Nigerian National Petroleum Corporation (NNPC).”

    She explained that “transparency and the rule of law will be crucial in reducing constraints to the country’s growth.”

    At her meetings with the authorities, Largarde said they discussed how to maintain economic progress while making the transition towards more inclusive and sustainable growth.

    Poverty, inequality, and unemployment levels she lamented, “remain too high, in addition to the challenge of the Boko Haram insurgency. Nigeria also has to deal with the difficulties presented by falling oil prices, reduced emerging market demand, and tightening global financial conditions.”

    This challenges she noted have “led to sharply lower export earnings and government revenues. The non-oil sector has also been affected and financing for investment is hard to come by.”

    1n 2015, however, growth is expected to slow to about 3 1/4 percent, with a slight recovery in 2016. The IMF she said “remains Nigeria’s committed partner as it moves forward to face the challenges of the future.”

  • IMF: August visitor in January

    SIR: The International Monetary Fund (IMF) boss is in Nigeria to straighten some issues about subsidy and naira devaluation. The falling prices have been predicted to continue till end of 2016. Of all Nigerian economists chanting diversification over the past 10 years, none have come up with clear policy blueprint of attaining sustainable growth that leads to a fully diversified economy. Nigeria’s taxation is one of the most unstructured for an emerging economy. If there were award for that, the country would have been given one. While we allow countries to invest heavily in Foreign

    Direct Investment, we don’t seek long term capital retention through available investment vehicle. Capital retention, which is as bad as present system of taxation, also need rigorous review by experts and policy makers.

    Historical flat taxation has crippled the economy. We have been stuck and refused to make advances in the tax administration of the country as the evolving governance structure rightly demand. Individual taxation is almost non-existent. Archaic Pay As You Earn (PAYE) is a state toy to create pension fund for workers. When it became a challenge that medical advances are helping workers to live productive life longer than government could sustain, pension fund was privatized and government  handed off issues of pension and post-retirement years.

    Good of them for acknowledging part of their weaknesses. There are still many more buried in the bureaucratic bottlenecks of government-controlled taxation.  All options are on table as democratic governance enjoy the flexibility of being purely experimental. No one should write-off privatization of taxation in Nigeria as the most feasible option in tackling the financial loopholes sucking fund out

    of Nigeria.

    Firms earning more should pay more to keep the economy going. It is just the truth, although in reality it doesn’t happen. There are traditions of celebrated falsehood in the financial realm. Firms can’t afford to be sincere despite government open relationship with commercial banks. The moral and financial obligations still rest on the government to make open the dark side of financial reporting in Nigeria. There are firms in Nigeria whose scope of operations are partly known. In trying times as this, firms that attain certain capital threshold must be dragged to the capital market and the public should benefit from their existence.

    Nigeria is in serious need. There is need to restructure existing taxation, boost the foreign reserve continuously and leave oil alone till further notice. Our close allies and international organizations have warned about tumbling oil prices. A $20 crude oil won’t see Nigeria to anywhere. If it were fear-mongering business, the IMF and the World Bank  won’t have such a correlated forecast on the crude oil prices. We have to ask in all humility; has our bad approach to taxation contributed to the low capital retention in the economy?

     

    • Unekwu Onyilo,

     Kogi State.

  • Senate urges CBN to relax strict Forex Policy

    Senate urges CBN to relax strict Forex Policy

    The Senate has urged the Central Bank of Nigeria (CBN) to immediately relax its strict Foreign Exchange policy.

    The upper chamber said that the strict foreign exchange policy is doing more harm to the country’s economy than good.

    Senate President Bukola Saraki who stated this during a meeting with the Managing Director of the International Monetary Fund, IMF, Christine Lagarde said small businesses especially, are being made to suffer unnecessarily.

    Saraki asked the apex bank to introduce a more flexible foreign exchange regime and reduce the present restrictions on the autonomous market which does not allow business men to bring in foreign exchange or utilise what they have in their accounts.

    The Senate President had equally canvass a similar view at a private meeting with CBN Governor, Mr. Godwin Emefiele during which he implored him to consider the effects of the present forex regime on small businesses which are dying  following evaporating crude oil revenue.

    Saraki also told Lagarde that “The IMF should support our CBN to bring in low interest loans to SMEs. We need to encourage entrepreneurs and make most of our new graduates job creators rather than job seekers. This is an area where we need the financial support and technical assistance of the IMF.”

    He explained that his office has received numerous complaints from small business owners, complaining that their businesses are being threatened by the huge bottlenecks now involved in doing business.

    “As legislators, we play an important role in making our people understand IMF’s advice, policy trade-offs, consultations and other engagements, so that ownership, transparency and accountability are brought to bear on economic policy choices.

    “The Nigerian legislature strongly believes that having a collaborative working relationship with the Executive Branch of government brings development closer to the people.

    “Since the advent of the new administration, we have worked closely to stabilize the economy and steady the fiscal environment. This, we have indeed demonstrated by the speedy passage of the Medium Term Expenditure Frame Work (MTEF) and recently in the postponement of our recess in order to receive President Muhammadu Buhari to present the 2016 Appropriation Bill.

    “The purpose of our Legislative Agenda is to enable us focus our lawmaking in areas that will help create jobs, expand our infrastructure base and make our economy work for the benefit and happiness of the majority of our people.

    “Pivotal to the attainment of this overarching objective is the state of the Nigerian business environment. In collaboration with major stakeholders, the 8th Senate is presently signing a memorandum of understanding on Enhancing Nigerian Advocacy for Better Business Environment Project, a National Assembly business and investment roundtable initiative, with developmental organizations”, the Senate President said.

    The Senate President used the occasion to call on the Central Bank of Nigeria (CBN) to ensure that in reacting to recent developments in the economy, it does not devalue the Naira for the mere sake of devaluation.