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Tag: Lagarde

  • Lagarde: Why IMF  is fighting corruption

    Lagarde: Why IMF  is fighting corruption

    •’It costs $2trl yearly’

    The International Monetary Fund (IMF) is joining the fight against corruption because the vice undermines the ability of states to deliver inclusive growth and lift people out of poverty, its Managing Director, Christine Lagarde, has said.

    Ms. Lagarde, who spoke in Washington, DC, at an event entitled, ‘Addressing corruption with clarity,’ and hosted by Brookings Institution, the International Finance Corporation (IFC), and the Partnership for Transparency Fund and Frank, said corruption is a corrosive force that weakens the vitality of business and stunts a country’s economic potential.

    She added that the IMF has been asked to do more on anti-corruption  urgently because there is an agreement, or a growing consensus among “our members that corruption is a macro-critical issue in many countries.”

    In terms of cost, the IMF chief said: “The annual cost of bribery, just one subset of corruption, is estimated to be between $1.5trillion to $2 trillion.”

    She aggregated this figure to be roughly two per cent of global Gross Domestic Product (GDP). “These costs represent the tip of the iceberg, the long-term impacts go much deeper,” she added.

    She said a recent survey of global youth revealed that young people identify corruption, “not jobs, not lack of education, as the most pressing concern in their own countries,” pointing out that corruption is a root cause of many of the economic injustices young men and women experience every day. She stated that corruption is not limited to one country or economy. “It can impact every nation. From embezzlement, to nepotism, to terrorist financing; corruption’s nefarious tentacles can take on different forms depending on the environment where it incubates,” she stressed.

    Ms. Lagarde, who defines public corruption as the ‘abuse of public office for private gain,’ said tackling the vice has long been part of IMF’s work, saying, “last month, the IMF Executive Board took stock of its progress and committed to confronting the problem even more directly moving forward.”

    To achieve this goal, she said new methodologies are needed to better quantify and analyse the problem. “That is why I am pleased that today’s (yesterday’s) event marks the launch of two new anti-corruption research initiatives led by Brookings, the IFC, and their partners.

    “Our work, like yours, begins with initiatives to increase transparency and accountability This work goes hand-in-hand with our efforts on regulatory reform and strengthening legal institutions. Regulatory reform does not necessarily mean deregulation, but instead streamlining to reduce the number of gate-keepers in charge of permits, fees, and contracts.”

    She said regrettably, “it is often the institutions charged with enforcement, the police, the public prosecutors, and the judiciary, where the rot of corruption sets in.”

  • Finance ministers hold talks on growth sustenance – IMF

    Finance ministers hold talks on growth sustenance – IMF

    More than 150 finance ministers across the world are discussing ways to ensure that ongoing economic recovery and growth in their respective countries are sustained, International Monetary Fund (IMF) Managing Director, Christine Lagarde, said on Thursday.

    Nigeria’s Finance Minister, Mrs. Kemi Adeosun, is among the ministers in talks with their counterparts across the world on sustained economic growth.

    The IMF projected that Nigeria’s economic growth would rise by 0.8 per cent this year.

    Lagarde, who spoke at the opening news conference of the IMF and World Bank Spring Meetings in Washington, said there was no single country in the world with negative forecast for this year even as the world economy is projected to grow at 3.5 per cent this year.

    “We are finally seeing the global economy picking up the momentum, which will be sustained. We need to ensure that the momentum is sustained and growth shared more equitably. We are discussing how to sustain the momentum with finance ministers. We need to reinvigorate productivity through innovation and trade,” she said.

    World Bank President, Jim Yong Kim, said the global body was encouraged to see stronger economic prospects after years of disappointing global growth.

    He said there are still many downside risks, however, and countries that have the fiscal space need to continue with structural reforms. “This is vital to accelerating the sustainable and inclusive economic growth needed to end extreme poverty by 2030. We are meeting at a time when we face several overlapping crises, both natural and man-made, all of which add urgency to our mission,” he said.

    Kim said there was need to find new and innovative ways to reach the poor, and make the world more secure and stable.

    “Last week at the London School of Economics, I outlined how we are working to change our approach. We have to start by asking whether the private sector can finance a project. If the conditions aren’t right, we will work with our partners to de-risk that project or, if needed, de-risk entire countries or sectors,” the World Bank chief said.

  • Lagarde appoints Selassie Director

    anaging Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, has appointed Abebe Aemro Selassie as Director of the IMF’s African Department.

    Mr. Selassie succeeds Antoinette Sayeh whose departure was announced previously. He is expected to begin his work in this capacity.

    A statement from the IMF said “Abe brings a profound understanding of the challenges facing Africa, having worked closely with policymakers from across the region for much of his career. His proven ability to provide intellectual leadership, track record of building collaborative relationships, analytical depth, and warm collegiality make him ideally placed to lead the IMF’s work with our membership in sub-Saharan Africa. Having had the opportunity to work with Abe over the last five years, I have been struck by his sound judgement, integrity, and commitment to teamwork.”

    Ms. Lagarde said Selassie’s career has spanned the private sector, the government, and the IMF. During his time in the IMF’s African Department, he was senior resident representative in Uganda, served as mission chief for South Africa, led work on the Regional Economic Outlook, and worked in various roles on countries ranging from Cote D’Ivoire, Ghana, and Kenya, to Burkina Faso, Guinea, Liberia, and Sierra Leone. Most recently,  Selassie oversaw the IMF’s effort to assist the three Ebola-stricken countries.

    Selassie salso brings extensive operational and policy experience from his assignments in other IMF departments, including the Strategy, Policy and Review Department and the European Department. He worked on Turkey and Poland between 1999 and 2003, and was Assistant Director and mission chief for Portugal during the Eurozone crisis. He has also worked on low-income country and emerging-market programme and policy design issues.

    Before joining the IMF, Selassie worked for the Economist Intelligence Unit, specialising in sovereign credit risk issues, and then for the Ethiopian government as Principal Economist in the Office of the President. He holds a B.A. in Economics from City of London Polytechnic and a Masters in Economic History from London School of Economics.

    “The IMF remains deeply committed to serving our members in Africa. Abe will bring a unique blend of extensive knowledge and experience to his new position as Director of the African Department,” Ms. Lagarde said.

  • Lagarde faces trial over payout

    The head of the International Monetary Fund, Christine Lagarde, will stand trial over a state payout to the French tycoon, Bernard Tapie, an appeals court has ruled.

    She is charged with negligence over the award to Mr. Tapie of €404m ($445m, £339m) in 2008 when she was France’s economy minister, the BBC reports.

    Ms Lagarde had appealed against a lower court ruling from December.

    She is now expected to appear before a special court for government ministers.

    The case stems from Mr. Tapie’s sale of his majority stake in the sports equipment company, Adidas, which was handled by the state-owned bank, Credit Lyonnais.

    The businessman sued for compensation after claiming he was defrauded by the bank and received too little from the sale in 1993.

    Ms Lagarde was responsible for the rare decision to appoint an arbitration panel, rather than allowing the courts to decide on the dispute.

    She served as economy minister when President Nicolas Sarkozy was in office.

    Mr. Tapie was a supporter of Mr. Sarkozy and there were allegations this may have played a role in her decision.

    She has always denied any wrongdoing, saying she acted in the interest of the state and with respect for the law.

     

     

     

     

  • Lagarde urges Britain to remain in EU

    The Managing Director of International Monetary Fund (IMF), Christine Lagarde, on Friday urged Britain to maintain its membership of the European Union as it was beneficial to the country.

    Lagarde made the call during a dialogue in Vienna, Austria, saying it was quite beneficial for Britain to vote to stay in EU.

    The IMF chief said it was imperative for the people to know that there were jobs and income gains from increased trade within the EU.

    She added that United Kingdom would continue to benefit from the Union, stressing that “there is, in my view, a clear case as to how the UK has benefited and will continue to benefit from its membership of the European Union.”

    Lagarde noted that being part of the EU had greatly aided the transformation of the UK into a dynamic and vibrant economy.

    “Membership in the EU has made the UK a richer economy, but it has also made it a more diverse, more exciting and more creative country,” Chinese news agency Xinhua quoted the IMF chief as saying at the dialogue.

    Lagarde, however, warned that there were risks in leaving the Union.

    She said, “We  have already been on record that the economic risks of leaving are firmly to the downside.

    “In all countries, there are people struggling in this new environment, but for the majority of citizens, the EU has been a great success.”

  • Lagarde seeks Lipton’s reappointment as Deputy MD

    Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, announced yesterday her proposal to reappoint David Lipton as First Deputy Managing Director to a five-year term beginning September 1.

    In announcing her decision, Lagarde said: “I am delighted to propose having David Lipton continue as the First Deputy Managing Director. Combining international expertise, public sector policy making and private sector experience, and a proven track record in economic crisis management, David has demonstrated over the last five years his excellent policy-making acumen, a drive toward innovation, a highly developed set of communication and negotiating skills, and invaluable appreciation of IMF policies and procedures.

    David is the consummate team player and, together with Deputy Managing Directors Mitsuhiro Furusawa, Carla Grasso and Min Zhu, we look forward to continuing to benefit from his incisive intellect, his wise counsel, and his warm collegiality.”

    Lipton, a national of the U.S, assumed his duties as First Deputy Managing Director on September 1, 2011 having first served as a Special Advisor to the Managing Director of the International Monetary Fund starting July 26, 2011.

  • Lagarde’s visit

    Lagarde’s visit

    •IMF has never been a friend 

    Many Nigerians literally had their hearts in their mouths when the four-day visit of the Managing Director of the International Monetary Fund (IMF), Mrs Christine Lagarde, to the country was made public. Of course they had their reasons; and genuine ones at that, too. Nigeria, like many other developing countries, see the IMF as an anathema. Nigerians have not forgotten their experience with the Paris Club to which their country was perpetually indebted and remained trapped in debt for decades until it managed to wriggle out of it when on June 29, 2005, the club and Nigeria agreed on an US$18 billion debt relief package with the Obasanjo administration. With specific reference to the IMF, the country roundly rejected the idea of the country taking a loan facility from it in the Babangida era. It was a big debate in which Nigerians gave a resounding NO for an answer!

    However, Mrs. Lagarde eventually arrived Nigeria on Monday for a four-day visit, as part of a two-country tour of the West African region. She concluded her visit to the country on Thursday.

    Indeed, it was as if the IMF boss had anticipated that Nigerians were going to think her visit would not be unconnected with talking the Federal Government into taking loans from the fund in view of the country’s dire economic situation. Hence her quick repudiation of any such agenda as soon as she came, even as she added that the country did not need loan to get back on track.

    So far, her visit has been a mixed blessing; at least given what is in the public domain about it. Expectedly, she supports the removal of fuel subsidy. She also said the IMF would be more than ready to assist Nigeria in its efforts to plug revenue leaks, trace stolen funds, and to restructure the nation’s taxation system. These are laudable objectives.

    One of the country’s problems is that a lot of public funds are diverted into private pockets. Revelations from the investigations into the $2.1billion arms fund lend credence to this. Moreover, a chunk of the country’s stolen funds is stashed in banks abroad and the IMF boss sure knew what she was saying when she assured that her bank would help trace some of these funds. This year alone, the Federal Government hopes to rake in some billions of the looted funds. Then the area of restructuring the country’s’ taxation system so as to bring in more eligible individual and corporate entities that should be paying taxes but are currently out of the tax net is a good step which would make more money available to the government for developmental purposes.

    All said, Mrs Lagarde might have come and left, the point is that we also know where the shoes pinch. We know how we got to our present mess. We therefore do not necessarily need any outsider to come and show us the way out of the woods. And if at all there must be such advice, it must be one that would point the way forward and not one that would further get us deeper into crisis.  In effect, while the Federal Government should be careful about accepting wholesale the suggestions by the IMF boss, the bottom line is for the government to refuse to accept dictation by the IMF managing director on things that would be injurious to our economy. The Federal Government must sift the wheat from the chaff.

    We should not forget the experiences of some other countries that swallowed, hook, line and sinker, the policies enunciated by the IMF in the past only to be worse off. Indeed, the fund has had to apologise to some of these countries for prescribing antidotes that exacerbated, rather than ameliorate their suffering. Nigeria should avoid falling into such one-cap-fits-all traps.

     

  • Nigeria’s walking with a spring in its step, says Lagarde

    Nigeria’s walking with a spring in its step, says Lagarde

    I see another immediate policy priority — strengthen Nigeria’s external position. The essential fact is that, given the structure of the economy, the massive fall in oil prices — which is expected to continue — has changed the medium-term foundations for economic resilience. To be clear, the goal of achieving external competitiveness requires a package of policies, including business-friendly monetary, flexible exchange rate and disciplined fiscal policies, as well as implementing structural reforms. Additional exchange rate flexibility — both up or down — can help soften the impact of external shocks, make output and employment less volatile, and help build external reserves. It can also help avoid the need for costly foreign exchange restrictions – which should, in any case, remain temporary. And going forward, improved competitiveness from improved exchange rate flexibility and other reforms will facilitate the needed diversification of the exports base and, ultimately, growth.

    How can policymakers achieve more inclusive, sustainable growth?

    This brings me to my final topic – achieving inclusive and sustainable growth.

    The good news is that Nigeria is already, in many ways, a 21st-century economy.

    • Think of the boom in mobile communications in a country where more than 140 million cell phones are in use, nearly one for each Nigerian.
    • Think of the vibrant, home-grown film industry that has become the world’s second-largest by output. Nollywood employs about one million people who create films that are winning audiences across the continent and beyond.
    • Think of the growing number of innovative startups — from fashion to software development — that are promoting Brand Nigeria. Indeed, the growth in services to about half of Nigeria’s output is a testament to the transformation that has begun, and which needs to continue.

    But, we all know that huge structural challenges remain, despite the many initiatives that are ongoing. Let me highlight the conditional cash transfer scheme in Kano, where poor households receive financial assistance linked to girls’ enrolment in schools. Overall, however, poverty and inequality still remain high, especially in some parts of the country.

    Women account for about 42 per cent of the total labour force — which is comparatively low — and their literacy rates are well below that of men. Maternal mortality is relatively high because of limited access to health care. Many women and children are dying every day simply because they cannot get to medical facilities fast enough.

    With that in mind, what are the key policy priorities? Invest in quality infrastructure, make the banks work, and improve governance. Let me take each in turn.

    The first is to act with resolve to significantly improve transportation networks and power delivery (i.e., generation, transmission, and distribution). For example, Nigeria could be exporting tomato paste — a staple of Nigerian cuisine — on a large scale, but it imports about half of what it needs. This is why Nigeria needs to build more roads and better rail networks, so that more farmers can bring their crops to market.

    Likewise, more investment is needed in energy infrastructure in a country where too many businesses and households regard their backup generators as their main power source.

    The second priority is to build resilience by fostering a sound banking system. This will help channel more savings into productive investments, especially in quality infrastructure.

    To be sure, Nigeria’s banks are generally well-capitalised and more resilient than during the downturn of 2008-2009. But, they are beginning to feel the impact of the growing vulnerabilities in the corporate sector. This means rising non-performing loans, which will need to be carefully monitored and managed.

    The third priority is to act with resolve in fighting against corruption. In his first public speech after the election, President Muhammadu Buhari, singled out corruption as a “form of evil that is even worse than terrorism.”

    Corruption not only corrodes public trust, but it also destroys confidence and diminishes the potential for strong economic growth.

    At the global level, it is estimated that the cost of corruption is equivalent to more than five percent of world GDP1, with over $1 trillion paid in bribes each year.

    Here in Nigeria, important initiatives to discourage graft are underway and should be applauded.

    Let me highlight the publication of monthly data on the finances and operations of the Nigerian National Petroleum Corporation (NNPC). This provides information on a key sector, building confidence in transparency, and improving accountability of oil revenues, for the benefit of all Nigerians.

    Much more can — and needs to be — done. Fighting corruption is a multi-year, multi-generational struggle that must be won.

    Conclusion

    So, let me conclude: today your nation has embarked on a new journey. Nigeria is looking ahead, while drawing strength from its assets — the richness and diversity of its culture, the ingenuity of its people, and the belief in a better future.

    Today policy makers have the opportunity to address near-term vulnerabilities and medium-term challenges — with resolve, resilience, and restraint.

    Today the “Giant of Africa” is walking with a spring in her step — inspiring others in the region and across the world.

    As the great Nigerian poet Ben Okri once said: “Our future is greater than our past”.

  • Nigeria faces hard choices, IMF boss Lagarde warns

    Nigeria faces hard choices, IMF boss Lagarde warns

    as part of her four-day visit to Nigeria, International Monetary Fund (IMF) Managing Director Ms. Christine Lagarde was yesterday at the National Assembly. In an address to principal officers of the Senate and some senators, the IMF chief appraised the economy. She said Nigeria was on track to regaining her position as the “Giant of Africa”. Below is the text of her speech:

    I would like to thank you for the gracious introduction, and members of parliament and the people of Nigeria for their incredible hospitality.

    I have been looking forward to starting my new year here in Nigeria — and I am grateful for the special privilege to speak before this parliament.

    My first visit to Africa as IMF (International Monetary Fund) Managing Director was in late 2011, and the first country on my itinerary was Nigeria. At that time, Nigeria was emerging from the 2008-2009 commodity price collapse and the banking crisis that followed.

    Since that visit, Nigeria has been acknowledged as the largest economy in Africa — with a maturing political system. We saw a peaceful general election last year in which, for the first time in Nigeria’s history, there was a democratic transition between two civilian governments. It was a strong sign of Nigeria’s commitment to democracy, to a new Nigeria.

    At the same time, the external environment has changed. Oil prices have fallen sharply; global financial conditions have tightened; growth in emerging and developing economies has slowed; and geopolitical tensions have increased.

    All this has come at a time when Nigeria is facing an urgent need to address a massive infrastructure deficit and high levels of poverty and inequality.

    So, Nigeria faces some tough choices going forward. Nigerians, however, are well known for their resilience and strong belief in their ability to improve their nation and lead others by example. I firmly believe that Nigeria will rise to the challenge and make the decisions that will propel the country to greater prosperity.

    As the great Nigerian novelist, the late Chinua Achebe, once said: “If you don’t like someone’s story, write your own,” this is exactly what you are doing right now.

    And let me assure you that, as you go forward, as you develop your story, the IMF will support your efforts.

    Today, I would like to offer my perspective — on your story and punctuate it with three R’s – Resolve, Resilience, and Restraint.

    • I will first identify the global economic transitions that are affecting Nigeria and the region.
    • I will then turn to the importance of managing the near-term vulnerabilities facing Nigeria’s economy.
    • And finally, share my thoughts on what might help to achieve more inclusive and sustainable growth.

     

    Global economic transitions        and implications for Nigeria

    and the region

     

     

    So, let me start with the big picture. For more than a decade, growth in sub-Saharan Africa was driven by an extraordinary combination of improved policies, stronger institutions, high commodity prices, and high capital inflows.

    The region has now entered a different phase, where commodity prices and capital flows are far less supportive. We are in the process of updating our forecasts, but broadly the IMF staff estimates that regional economic growth dropped from five percent in 2014 to about 3.8 per cent last year, with only a modest recovery expected in 2016.

    There is a similar picture at the global level — modest growth last year, with only a slight acceleration expected in 2016. Emerging markets, which propelled global growth after the 2008 global financial crisis, have slowed; advanced economies are still recovering from the impact of that crisis; and financial markets remain volatile.

    In fact, both at the regional and global level, growth is affected by three major economic transitions. They include China’s move to a new growth model, the prospect of commodity prices remaining lower for longer, and the increasing divergence in monetary policy in major economies, especially since the recent rise in United States (U.S.) interest rates.

    Understandably, policy makers in this region are concerned — because these transitions can create spillovers through trade, exchange rates, asset markets, and capital flows.

     

    Massive pressures,

    challenging prospects

     

    For example, spillovers are now affecting oil-exporting countries, which generate about half of this region’s GDP (Gross Domestic Product). These economies, including Nigeria, are facing massive pressures and challenging prospects.

    Over the medium-term, oil prices are likely to remain much lower than the 2010-13 average of more than $100 a barrel. Why? Because of the huge over supply in global oil markets. Think of the shale oil boom in the United States, and some historically large producers such as Iraq and Iran coming back to the market. Other factors include OPEC’s (Organisation of Petroleum Exporting Country) strategic behaviour and the drop in global demand for oil, especially in emerging economies.

    Already, lower oil prices have sharply reduced Nigeria’s export earnings and government revenues. Both are likely to remain at depressed levels, reducing the space for policy interventions to address Nigeria’s social and infrastructure needs.

    Private sector investment will also be affected. Investor confidence about the outlook has remained weak, and financing is likely to become more difficult and more costly for everyone. With U.S. interest rates expected to continue to rise, albeit slowly, the likelihood of capital outflows will increase, and exchange rate pressures could mount as investors re-assess their appetite for risk.

    More broadly, sub-Saharan Africa is also facing spillovers from geo-political factors, including the fight against Boko Haram. The threat of terrorism is very real and never far from our minds. Having been in Paris during the November attacks, I know firsthand the sorrow that so many Nigerians carry in their hearts.

    In this region, 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.

     

    Managing near-term

    vulnerabilities

     

    This brings me to my second topic — how can policy makers manage these near-term vulnerabilities?

    Let me start by underscoring the progress made in recent years. Nigerians have created a large and diversified economy that has grown by about seven per cent a year over the last decade. This has been a remarkable achievement, a testament to Nigeria’s immense potential.

    The outlook, however, has weakened. Growth in 2015 is estimated at about 3.2 per cent — its slowest pace since 1999 — and only a modest recovery is expected in 2016.

    For a country with a rapidly increasing population, this means almost no real economic growth in per capita terms.

    On top of the slowdown, vulnerabilities have increased. The ability to manage shocks is restricted by low fiscal savings and reserves. And the weakening oil sector could stress balance sheets and put pressure on the banking system.

    Reduced confidence and lower capital spending also impact the non-oil corporate sector. Unfortunately, this sector looks less resilient today than during the downturn of 2008-2009. Companies that have increased their leverage and US-dollar debt in recent years may now come under pressure as they face rising interest rates and a stronger dollar.

    Nigeria also has a large regional footprint, and its fortunes affect that of its neighbors, especially through trade. For example, it is estimated that a one percent reduction in Nigeria’s growth causes a 0.3 per cent reduction in Benin’s growth.

     

    So what can policy

    makers do?

     

    I see an immediate priority — a fundamental change in the way government operates. What do I mean by that? 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.

    This means that hard decisions will need to be taken on revenue, expenditure, debt, and investment going forward.

     

    The three Rs as

    policy refrain

     

    Act with resolve — 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 (Value Added Tax) rate is among the lowest in the world and well below the rates in other ECOWAS (Econmic Community of West African States) members — so, some increase should be considered.

    Build resilience — by making careful decisions on borrowing. Nigeria’s debt is relatively low at about 12 per cent of GDP. But, it weighs heavily on the public purse. Already, about 35 kobo of every naira collected by the Federal Government is used to service outstanding public debt.

    Exercise restraint — by focusing on the quality and efficiency of every naira spent. This is critically important. As more people pay taxes, there will, rightly, be increasing pressure to demonstrate that those tax payments are producing improvements in public service delivery.

    Let me give you examples of what I mean:

    On capital expenditure, the focus must be on high-impact and high value-added projects. This is why the government is focusing on power, integrated transport (roads, rail, air and ports) and housing. These can help connect centers of activity across the country and drive growth prospects.

    On recurrent expenditure, efforts should be made to streamline the cost of government and improve efficiency of public service delivery across the federal and sub-national governments. Transfers and tax expenditures should also be addressed. For example, continuing the move already begun by the government in the 2016 Budget to eliminate resources allocated to fuel subsidies would allow more targeted spending, including on innovative social programs for the most needy.

     

    What to do with

    fuel subsidies

     

    Indeed, fuel subsidies are hard to defend. Not only do they harm the planet, but they rarely help the poor. IMF research shows that more than 40 per cent of fuel price subsidies in developing countries accrue to the richest 20 per cent of households, while only seven per cent of the benefits go to the poorest 20 per cent.

    Moreover, the experience here in Nigeria of administering fuel subsidies suggests that it is time for a change — think of the regular accusations of corruption, and think of the many Nigerians who spend hours in queues trying to get gas so that they can go about their everyday business.

    At the same time, we should not forget the huge challenges facing Nigeria’s state and local governments. These sub-national governments—which account for the bulk of social spending — have only limited tools to manage the impact of declining oil revenues. My message here is to manage better the smaller purse, while building capacity to increase internally generated revenue.

    The IMF can help in that regard by providing technical assistance on public financial management. We did so for the Kaduna State Government. We can explore how to support states’ efforts to undertake budget reform.

     

     

  • Saraki to meet IMF chief Lagarde today

    Saraki to meet IMF chief Lagarde today

    SENATE President Dr. Bukola Saraki will today lead the Senate’s leadership to a meeting with the Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, who is on a four-day working visit to Nigeria.

    The meeting, holding at the National Assembly, will focus on the nation’s economy, particularly the global developments and their impact on Nigeria.

    In a statement in Abuja yesterday by his Media Adviser, Alhaji Yusuph Olaniyonu, Saraki noted that falling oil prices at the international market had negatively impacted the nation’s oil revenue, external reserve and increased pressure on the Naira at the foreign exchange market.

    The meeting of the Senate leadership with the IMF chief will be coming after a similar exchange Lagarde had with President Muhammadu Buhari and other managers of the national economy.