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IMF expects Nigeria’s economy to meet 2024 grow target with stronger reforms

Published

3 months ago

August 29, 2024

The International Monetary Fund (IMF) says stronger reforms are needed for Nigeria to reach its goal of 3.1% economic growth in 2024.

The IMF’s Resident Representative, Dr Christian Ebeke, said this at the “Invest Nigeria” themed International Business Conference and Expo 2024 held by the Lagos Chamber of Commerce and Industry (LCCI) on Tuesday in Lagos.

Ebeke said that the country needed more changes to its laws and rules about running a business to grow a little faster than the 2.9% rate seen in 2023.

He said that these kinds of measures would change the country’s growth rate into something more stable. But he did say that the country had made progress in its loan market, as well as in its financial and international areas.

“Insecurity, tight financial conditions, multiple taxes, insufficient power and corruption are foremost constraints identified by businesses.

“What comforts the IMF is that the Nigerian government can address these issues, and they are currently being addressed through reforms by the Federal Government.

“And we are encouraged by the fact that these issues can be reversed,” he said.

He said that Nigeria should close the structural gaps like India does by removing 25% of the problems with government and company rules.

In the next three years, the Gross Domestic Product (GDP) could grow by 6.4% if that is done, according to him.

Adegboyega Oyetola, who is the Minister of Marine and Blue Economy, said that Nigeria’s location and wealth of resources made it a great place to invest, especially in the marine and blue economy fields. Even though there were problems, Oyetola said that the government was committed to making the right conditions for economic growth so that big capital would come in.

He talked about some of the ways the government is trying to get people to invest in the marine and blue economy sector. For example, businesses that operate in free trade zones don’t have to pay taxes, and they get help with building infrastructure.

He said that the government had given the marine sector new ways to sell through the African Continental Free Trade Area’s Guided Trade Initiative (GTI) and the Cabotage Vessel Financing Fund (CVFF), among other things.

“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects. To boost investment, the Nigerian government has introduced a wide range of incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support. I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 hour ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.