2024 IMF/WB meetings: Nigeria showcases economic resilience, leadership
During the recent World Bank and IMF Spring Meetings, Nigeria, under President Bola Ahmed Tinubu’s leadership, and represented by Minister of Finance and Coordinating Minister for the Economy, Wale Edun OFR, showcased the nation’s economic resilience and strategic response to global challenges.
Global Economic Outlook and Nigeria’s Role
The 2024 Spring Meetings highlighted the global economy’s improved resilience, acknowledged by economic leaders worldwide. Despite a global economic environment challenged by high inflation rates and ongoing geopolitical tensions, Nigeria has emerged as a regional leader in promoting sustainable economic practices.
The Bank and the Fund have commended Nigeria’s efforts in tightening monetary policies, revising the country’s growth forecast upwards to 3.4% for this year – a reflection of the effectiveness of the administration’s economic policies.
HM Edun, who also serves as the Chair of the African Caucus, emphasised Nigeria’s pivotal role in ratifying the third chair for Sub-Saharan Africa at the IMF, a significant step in bolstering Africa’s voice on global economic issues.
Domestic Focus
The government’s commitment to economic stability remains unwavering. HM Edun highlighted several key initiatives aimed at bolstering Nigeria’s economy, stating:
“Our focus on agriculture, manufacturing, and electricity aims not only to stabilise prices but also to secure food and reduce dependency on imports. These initiatives, coupled with the inflation targeting policies of the Central Bank, are expected to reduce inflation by the second half of the year, which would allow for a potential reduction in interest rates.”
The Minister also stated that significant efforts are being made in the housing sector to support the rapid development of sustainable value chains, expected to have a catalytic effect on the economy and make housing more accessible.
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Regarding the National Social Investment Programme (NSIP), the Minister noted the recent review and improvement of its financial architecture to enhance targeted delivery and efficiency, with direct transfers having recommenced, providing critical support to vulnerable populations.
He reaffirmed the administration’s commitment to ensuring the Naira’s position as a strong store of value and mentioned ongoing dialogues with the organised private sector to learn how policy can best support their growth and sustainability.
Strategic Economic Reforms and Outlook
On the foreign exchange front, the Central Bank of Nigeria (CBN) has made significant strides in enhancing liquidity and creating a fair, more transparent FX market. These efforts have been supported by the Ministry of Finance through the strategic issuance of financial instruments through the Debt Management Office (DMO), designed to attract foreign currency inflows.
Update on financing discussions with the World Bank
The Federal Ministry of Finance continues to work closely with the World Bank on Nigeria’s application for up to $2.25 billion, comprising $1.5 billion in Development Policy Financing and $750 million in Programme-for-Results Financing. We expect that the Board of the World Bank will meet in June 2024 to consider the final approval of this financing package.
Commitment to Effective Implementation
Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, affirmed the Ministry’s commitment to facilitating the rapid implementation of government policies. “We are dedicated to aligning our actions with the administration’s policy thrust, ensuring that initiatives are effectively executed and achieve their goals,” stated Mrs. Jafiya.
“With the ongoing adjustments and the resilient and resourceful spirit of our people, we are confident of a brighter, more prosperous future for all Nigerians,” concluded Edun.
Signed
Mohammed Manga FCIA
Director, Information & Public Relations
April 22, 2024
