BY COBHAM NSA – With its sweeping reforms positively strengthening the economy and boosting fiscal stability, Nigeria says seeking bailout from the International Monetary Fund (IMF) is no longer an option.
Addressing African Finance Ministers on the sidelines of the IMF/World Bank Meetings in Washington, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said Nigeria is shifting towards self-sustaining growth and attracting investment as part of measures to effectively avoid any reliance on high-interest debt from the Bretton Woods institutions.
He stated that Nigeria’s reform programme, sustained over the past two years, has begun to yield tangible results, restoring credibility to economic management and strengthening the country’s ability to withstand mounting global headwinds.
Mr Edun said the government is deliberately shifting towards market-led policies and the country has resisted the temptation of administrative controls, particularly in the areas of management of foreign exchange and petroleum pricing.
Further maintaining that there is growing confidence in the country’s homegrown economic recovery strategy, he said: “The direction is clear. Nigeria is staying the course with internally driven reforms rather than turning to multilateral financing.”
However, the Minister said Nigeria’s improving outlook notwithstanding, the broader African landscape remains fragile, a development that demand accelerated and better-coordinated international financial support for vulnerable economies, as discussions intensify around a proposed $50 billion global assistance package.
He also said while reforms have enabled Nigeria to build critical buffers, many African countries remain highly exposed to external shocks and urgently require support to stabilise their economies.
Importantly, Edun stated that by allowing market forces to determine pricing, the government has eased the pain of necessary economic reforms, noting that this approach has reduced market disruption and kept the economy on a stable path despite ongoing global pressures.
