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IMF Expresses Confidence in EconomyIMF Expresses Confidence in Economy
This Day
Constance Ikokwu
16 October 2007
Ahead of the annual meeting of the World Bank and the International Monetary Fund (IMF) taking place this weekend, the Fund has expressed confidence in the Nigerian economy even as it commended the administration of President Umaru Musa Yar'Adua for making the "right commitment" in that regard. Managing Director of the IMF, Rodrigo de Rato, yesterday in Washington DC painted a "fairly good" picture of the economy in line with improving macro-economic stability and the government's determination to continue reforms.
At a breakfast meeting with journalists at the Fund's headquarters, de Rato said "as for Nigeria, we are seeing low debt and improving macro-economic stability. All that brings us to have higher confidence in the Nigerian economy. We see strong growth in the non-oil economy in the next year and strong reforms. We see that the new government which took office in May continues to strengthen macro-economic stability and social reforms, this is the right commitment."
The MD pointed out that Nigeria, like other developing economies, are witnessing an infrastructure gap which is a huge challenge for the future. He harped on social reforms and the need for the federal and state governments to outline a clear way of sharing oil revenue for the benefit of the masses. Commenting on the final and "successful" review of the Policy Support Instrument (PSI) in the country, de Rato said the Nigerian government has indicated interest in maintaining a close relationship with the Fund. The Fund is also ready to negotiate with the government in order to offer more technical assistance, he said.
The PSI is a programme designed for low income countries that may not need financial assistance but seek close co-operation with the Fund to get their policy frameworks endorsed. De Rato said the Fund recognises the need for low income countries to have a stronger voice. "I think there is a greater convergence that the quota reforms should not only increase the voice of dynamic economies that are under-represented but also of emerging economies as a whole. I think the idea that low economies need to have a stronger voice here, if anything, has strengthened itself and gathered more momentum," he stated.
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