Christine Lagarde, Managing Director, International Monetary Fund
(IMF), has met with President Muhammadu Buhari at the Presidential
Villa, Abuja, harping on the need for fiscal discipline, financing and
implementation of monetary policies.
She said in view of the economic challenges faced by Africa’s leading
economy, which focuses on oil as its main source of income, the
president must follow his corruption and transparency crusade through.
Lagarde, who said she would not comment on the 2016 budget proposal,
however, added that a team of analysts from the fund would be in
Nigeria next week to carry out proper assessment.
The aim of Lagarde’s visit is to strengthen relations between the IMF
and its African member countries, as well as reinforcing the
partnership with Nigeria, Africa’s largest economy.
In Cameroon, Lagarde is to meet President Paul Biya and his economic
team. She will also hold meetings with the finance ministers of the
Economic and Monetary Community of Central Africa (Cemac).
She said: “As the largest and most diversified economy in Cemac,
Cameroon is well-placed to sustain, and reinforce, the momentum of
integration.”
Lagarde’s visit came days after Buhari announced the 2016 budget, in
which he announced Nigeria will increase domestic borrowing to N984
billion and foreign borrowing to N900 billion, totalling N1.84
trillion.
Buhari forecast the country would face N2.22 trillion deficit amid an
ongoing fuel crisis and decreasing oil prices. Price per barrel is now
around $36 to $38 compared to $50 at the beginning of 2015.
Nigeria is Africa’s biggest oil producer and petroleum exports make up
90% of the country’s total revenue.
However, the nation’s lack of refineries – at present there are four
and of these, three resumed production in July after months of
inactivity – mean the country has to export about 90% of its crude oil
and import petroleum products, including fuel.
The government then sells fuel to Nigerians at subsidised prices and
reimburses the difference to importers. The previous administration
led by Goodluck Jonathan, has been blamed for the ongoing fuel
shortage, amid the outrage of many.
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