Nigerian President Muhammadu Buhari, elected on a pledge to tackle corruption, holds talks with the International Monetary Fund on Tuesday as the country seeks to spend its way out of an economic crisis fuelled by plunging oil prices.

The Fund said on Monday its managing director Christine Lagarde would meet Buhari and his Finance Minister Kemi Adeosun.

"I look forward to productive meetings ... as they address important economic challenges, most importantly the impact of low oil prices," said Lagarde in a statement.

The statement gave no other details, but the meeting suggests an acknowledgement of Buhari's efforts to revive Africa's largest economy.

He was elected in March after a campaign in which he promised to clamp down on the endemic corruption that has left many Nigerians mired in poverty despite the country's enormous energy wealth.

He then announced a record budget for 2016, forecasting a doubling of the deficit to 2.2 trillion naira ($11 billion) and a tripling of capital expenditure intended to help the country adjust to the downturn in oil, which has lost around two-thirds of its value since mid-2014.

It has foreign currency reserves worth around $30 billion, and plans to borrow as much as 900 billion naira abroad to fund the deficit, which is equivalent to 2.16 percent of gross domestic product, Buhari said. Some 984 billion naira would be borrowed at home.

Nigeria relies on crude exports for more than half of state revenues and is Africa's top oil producer.

It is also facing an insurgency by Islamist group Boko Haram, which has killed thousands and displaced more than two million people in the remote northeast and raised concern among potential investors.

Lagarde is due to arrive in Nigeria's capital, Abuja, on Monday. She is due to give a speech to lawmakers on Wednesday and will also meet business leaders during her visit, the IMF said.

Lagarde will also visit neighbouring Cameroon, where she will meet President Paul Biya and his economic team.

The government of the central African country that exports coffee, cocoa and oil tabled a 2016 budget of 4,200 billion CFA francs ($6.9 billion) in December.

Cameroon is part of an 8,700-strong task force including troops from Chad, Niger, Nigeria and Benin that has pledged to destroy Boko Haram, which though based mainly in Nigeria has become a major threat to regional security.

Lagarde will also meet Finance Ministers from the six member countries of the Economic and Monetary Community of Central Africa (CEMAC), delivering a speech to the group on Jan. 8.

"The country (Cameroun) and the entire CEMAC region are confronted with the twin shocks of the oil-price slump and a surge in disruptions related to security," Lagarde said.



Source: http://news.yahoo.com/imf-head-visits-nigeria-president-seeks-way-economic-114636754--business.html

APC taking us back to the grip of IMF.

agitator:
APC taking us back to the grip of IMF.

Only if PDP had not destroyed the country in the 16 years it held sway.


@ topic, I trust my Sai Buhari not to enter into any agreement that will not be in the best interest of Nigeria.

If he could say no to IMF policies that were not in the nation's interest in 1984, he can surely say so in 2016. In fact, he has given us an indication to be ready to do that when he refused to devalue the naira as a condition given by JP Morgan in order to continue participating in its Price Index.

PassingShot:
Typing..

ok, waiting...

The president, by training and experience, has limited Economic knowledge. I expect the the Minister of Finance & the CBN Governor to be on top of their game for such meetings. They should interrogate any IMF proposal to ensure that every inhibiting conditions and clauses are removed before they sign anything. Ignorance or Sabotage should not be an excuse for mortgaging the future of Nigerians to the Rothschilds' Dynasty.

agitator:
APC taking us back to the grip of IMF.

The reverse is actually the case. PDP and Ngozi Okonjo iweala sold us to them. APC is now cutting off IMF/world bank grip on how economy and that is why Largade is here to persuade us back.

IMF/world bank are not our best friends. Their conditionalities will compound our problems the more so, whatever they are offering should be properly scrutinised. Going forward, we should seek more cooperation with China when it comes to financing capital project. Chinese gives better conditions than the bretton woods.

Bevista:
The president, by training and experience, has limited Economic knowledge. I expect the the Minister of Finance & the CBN Governor to be on top of their game for such meetings. They should interrogate any IMF proposal to ensure that every inhibiting conditions and clauses are removed before they sign anything. Ignorance or Sabotage should not be an excuse for mortgaging the future of Nigerians to the Rothschilds' Dynasty.

Can you provide documentation of any IMF conditionalities in the past which were actually supposed to be detrimental to Nigeria's economy? Because I've actually taken the trouble to look at what the IMF was proposing to Buhari in 1984, and all of their suggestions seemed perfectly sensible, even if they didn't appeal to Buhari's populist instincts. And what's with the Rothschild stuff? I never figured you for a conspiracy theorist.

omohayek:
Can you provide documentation of any IMF conditionalities in the past which were actually supposed to be detrimental to Nigeria's economy? Because I've actually taken the trouble to look at what the IMF was proposing to Buhari in 1984, and all of their suggestions seemed perfectly sensible, even if they didn't appeal to Buhari's populist instincts. And what's with the Rothschild stuff? I never figured you for a conspiracy theorist.

IMF conditionalities are generally known to stiffle economic growth in debtor countries. I'm sure you've heard about the popular AUSTERITY conditions.
---
In modern macroeconomics, it has been proven that tightening during recession simply leads to "Austerity Trap". During times of recession or economic slowdown, expansionary monetary/fiscal policies are needed to spur growth. So, they must not come here to preach Austerity to us.
---
As for the Rothschilds Conspiracy Theory, there's too much to talk about, so I would rather not start

Okay

Bevista:
IMF conditionalities are generally known to stiffle economic growth in debtor countries. I'm sure you've heard about the popular AUSTERITY conditions.
---
In modern macroeconomics, it has been proven that tightening during recession simply leads to "Austerity Trap". During times of recession or economic slowdown, expansionary monetary/fiscal policies are needed to spur growth. So, they must not come here to preach Austerity to us.
---
As for the Rothschilds Conspiracy Theory, there's too much to talk about, so I would rather not start

Nations usually only go hand-in-cap to the IMF when they're no longer able to borrow at an affordable rate in order to finance their deficits. The first thing any lender of last resort will ask for is to rein in future spending so that there is some way to get back on the path to sustainability, otherwise the lender would simply be throwing good money after bad.

The problem with your position is that you don't consider the alternative to accepting the IMF's conditions is usually bankruptcy, which means

1. being excluded from the financial markets for decades, as well as
2. either implementing austerity measures anyway, or attempting to inflate away the debts.

If you want to make a fair assessment of the IMF's impact, you need to compare what happens to loan applicants who accept its terms and those who reject them. Britain had to borrow from the IMF in the 1970s, and managed to get out of its crisis with no lasting damage. On the other hand, Buhari and Babangida made a great show of rejecting the IMF's conditions, while in reality Babangida was not only forced to make even harsher cuts than the IMF had wanted, but on top of this he tried to mask it using inflationary monetary policies that saw the Naira steadily devalue throughout the 1980s.

As for that Rothschilds stuff, the only place where I see people repeating such things is on neo-Nazi websites full of paranoid nonsense about the Jews. It really detracts from your credibility to indulge in such banter.

Devaluation in the offing

omohayek:
Nations usually only go hand-in-cap to the IMF when they're no longer able to borrow at an affordable rate in order to finance their deficits. The first thing any lender of last resort will ask for is to rein in future spending so that there is some way to get back on the path to sustainability, otherwise the lender would simply be throwing good money after bad.

The problem with your position is that you don't consider the alternative to accepting the IMF's conditions is usually bankruptcy, which means

1. being excluded from the financial markets for decades, as well as
2. either implementing austerity measures anyway, or attempting to inflate away the debts.

Fair points raised.
---
The reason why IMF will rein in spending in the debtor country is to ensure prompt and regular repayment of their loan, and not to help the country. After the Global Financial Crisis, the US, UK, Japan and Europe did not follow Austerity or cut spending to put themselves on sustainable path. Instead they indulged in unprecedented spending through Quantitative Easing (QE) and Bond Purchases.
---
The IMF austerity proposal usually sound logical to the untrained mind but end up being counterproductive in the long run. I don't want to go into the MAMSER and other austerity programs of the IBB government which ended up impoverishing the country.
---
I'll reserve further comments on the Rothschilds subject.

Too bad. I just home PMB wouldn't fall for their economic colonization.

Bevista:
Fair points raised.
---
The reason why IMF will rein in spending in the debtor country is to ensure prompt and regular repayment of their loan, and not to help the country. After the Global Financial Crisis, the US, UK, Japan and Europe did not follow Austerity or cut spending to put themselves on sustainable path. Instead they indulged in unprecedented spending through Quantitative Easing (QE) and Bond Purchases.
---
The IMF austerity proposal usually sound logical to the untrained mind but end up being counterproductive in the long run. I don't want to go into the MAMSER and other austerity programs of the IBB government which ended up impoverishing the country.
---
I'll reserve further comments on the Rothschilds subject.

The question is, though, do you really think it's better to say no to an IMF loan and then be forced to undergo even harsher budget cuts than the IMF would have proposed? Or would you prefer the Zimbabwe alternative, where you keep printing money at such a rate that it loses all value? Because those are the only two alternatives I can see when a nation's government has been living beyond its means and the bond markets are no longer willing to give it more funds or roll over its existing debt. If you know of a third alternative, I'd certainly like to hear it.

omohayek:
The question is, though, do you really think it's better to say no to an IMF loan and then be forced to undergo even harsher budget cuts than the IMF would have proposed? Or would you prefer the Zimbabwe alternative, where you keep printing money at such a rate that it loses all value? Because those are the only two alternatives I can see when a nation's government has been living beyond its means and the bond markets are no longer willing to give it more funds or roll over its existing debt. If you know of a third alternative, I'd certainly like to hear it.

First of all, I do not think Nigeria is in a position where they cannot access the bond market. Despite the fall in oil prices, our economic fundamentals are not that bad to scare bond investors. Especially with the minor reforms being carried out.

Secondly, I do not think the IMF loan is intrinsically bad, after all, you'd normally get the loan at a better rate than the bond market. The problem usually lie in the conditions attached to the loan. I actually want Nigeria to access the loan but with a strong negotiating position to ensure we are not arm twisted. If we cannot get a good deal, then we look elsewhere. The Chinese will be willing creditors.

can't delete mistaken double post?

We are in for a long long long ride.

Not for nothing, but I sorely hope they give our President an Economics 304 lecture before leaving.

Bevista:
IMF conditionalities are generally known to stiffle economic growth in debtor countries. I'm sure you've heard about the popular AUSTERITY conditions.
---
In modern macroeconomics, it has been proven that tightening during recession simply leads to "Austerity Trap". During times of recession or economic slowdown, expansionary monetary/fiscal policies are needed to spur growth. So, they must not come here to preach Austerity to us.
---
As for the Rothschilds Conspiracy Theory, there's too much to talk about, so I would rather not start

But Bubu himself has been preaching austerity to us here, hasn't he?

I hope all the Mr and Mrs Know it all can as well join the IMF to address pa Buhari on way out of this mess, afterall Nigeria is we own.

Don't just rant on Nairaland, take a bold step to address this issue once and for all

Bevista:

The reason why IMF will rein in spending in the debtor country is to ensure prompt and regular repayment of their loan, and not to help the country. After the Global Financial Crisis, the US, UK, Japan and Europe did not follow Austerity or cut spending to put themselves on sustainable path. Instead they indulged in unprecedented spending through Quantitative Easing (QE) and Bond Purchases.
---
The IMF austerity proposal usually sound logical to the untrained mind but end up being counterproductive in the long run. I don't want to go into the MAMSER and other austerity programs of the IBB government which ended up impoverishing the country.
---
I'll reserve further comments on the Rothschilds subject.

IMF is in the business of selling debt with which they can control the debtor for a long time. lagarde coming to Nigeria is not out of love for the country but in order to make her books look good. She should not be left alone with Buhari as she would easily hoodwink him since he is not that exposed. Also we hope our current ministers would be more patriotic than NOI and negotiate to favour the country. The problem with Nigeria is that we ignore our prime asset ie human resources and focus on national resources. Can you imagine Nigeria population with majority being skilled and productive labour force. Nigeria should be wary of IMF. China made it without them. What we need is discipline and harnessing opportunities at our disposal and not entering into IMF trap. Austerity measures would lead to more corruption and with the amount of stress we are facing it could turn explosive.

sunnyb0b0:
But Bubu himself has been preaching austerity to us here, hasn't he?

The 2016 budget is clearly not an austerity budget. If anything, it is more expansionary than any budget ever in Nigeria.
---
The government intends to spend over N1.5tn on infrastructure this year - 3 times the 2015 Capital budget. That doesn't sound like Austerity.

Bevista:
The 2016 budget is clearly not an austerity budget. If anything, it is more expansionary than any budget ever in Nigeria.
---
The government intends to spend over N1.5tn on infrastructure this year - 3 times the 2015 Capital budget. That doesn't sound like Austerity.

That means Buhari himself doesn't know the meaning of austerity.

I thought they made loans available for small investors? Also, ministry of Labour and productivity needs to do their work. By auditing employers to ensure that a certain percentage of their staff are Nigerian. They should also be looking to compliance with labor and workplace laws.
Provide small business loans to specific sectors where we are lacking in trade. Agriculture and manufacturing.
Ensure that you promote competition. Break the monopoly of people like dangote who hold the country to ransome.
Science and technology must also reward innovation.
Finally reduce interest rates and give companies tax breaks for employing and empowering Nigerians.
Please look for funding from other sources. Not IMF.

agitator:
APC taking us back to the grip of IMF.

oyyy...i hope,you understand that you can not develop without credit....nigeria is too far behind,due to decades of corruption and mismanagement.....there is no way we can catch up on our own feet,without making debt.....butt heyy...

see it from the other side of the coin: we still have one of the lowest dept to gdp in west-africa.....

if this money is not mismanaged,we will catch up to international standard very quick....

PassingShot:


Only if PDP had not destroyed the country in the 16 years it held sway.


@ topic, I trust my Sai Buhari not to enter into any agreement that will not be in the best interest of Nigeria.

If he could say no to IMF policies that were not in the nation's interest in 1984, he can surely say so in 2016. In fact, he has given us an indication to be ready to do that when he refused to devalue the naira as a condition given by JP Morgan in order to continue participating in its Price Index.

sai..

seunmsg:


The reverse is actually the case. PDP and Ngozi Okonjo iweala sold us to them. APC is now cutting off IMF/world bank grip on how economy and that is why Largade is here to persuade us back.

IMF/world bank are not our best friends. Their conditionalities will compound our problems the more so, whatever they are offering should be properly scrutinised. Going forward, we should seek more cooperation with China when it comes to financing capital project. Chinese gives better conditions than the bretton woods.

thats what we should do,,,we should concentrate on russia,china and iran.....that was very sad what happend to the shiites in nigeria...

but we shall not compromise nigeria,because of two brothers fighting each other....!!!

Bevista:
IMF conditionalities are generally known to stiffle economic growth in debtor countries. I'm sure you've heard about the popular AUSTERITY conditions.
---
In modern macroeconomics, it has been proven that tightening during recession simply leads to "Austerity Trap". During times of recession or economic slowdown, expansionary monetary/fiscal policies are needed to spur growth. So, they must not come here to preach Austerity to us.
---
As for the Rothschilds Conspiracy Theory, there's too much to talk about, so I would rather not start

Ladies and gentlemen.... Behold, they have sold the future of this nation.

True federalism will force all states to develop their economic potentials making Nigeria more independent of unstable oil wealth.




Signed

Scots Referendum

United Nations Referendum