Nigeria: World Bank, IMF put pressure on Buhari to come up with an economic blueprint

Nigeria

The World Bank and the International Monetary Fund, (IMF) have put up pressure on the Nigeria authorities to come up with an economic blueprint, if its drive for foreign loans was not being delayed.

Local media reports that officials of both international financial institutions have questioned the Minister of Finance and her team over the absence of a blueprint for which the loans being requested would be utilised.

Sources at the presidency revealed at the last IMF/ World Bank Group Annual Meetings, that the Nigeria team was asked to produce an economic blueprint which the financial bodies will offer support.

The source also said the IMF usually asks countries for what it called policy support instrument, PSI, an instrument, which serves as a document through which the multilateral institution monitors the economic progress of the country they support.

According to the source, during former President Olusegun Obasanjo’s administration, the NEEDS document was the Policy Support Instrument used to negotiate debt relief.

The World Bank Group is interested in such a document as a means of evaluating its recently launched Sustainable Development Goals.

Experts argued that apart from addressing the current challenges, such an economic framework, would go a long way to engender confidence in both local and international investors on the way forward.

At the moment, the Federal Government of Nigeria has not been able to come up with such a policy document. But in reaction to inquiry, a presidential aide said the present administration was working on a comprehensive economic blueprint that would soon be ready for launching.

The issue of economic blueprint had become very contentious in government circles, as the economic management team had produced a blue print that will be launched soon.

Stressing the need for an economic blueprint last week, a former deputy governor of the Central Bank of Nigeria (CBN), Dr Obadiah Mailafia advised the Federal Government to produce a comprehensive economic blueprint to fast track economic growth and development.

Mailafia gave the advice while speaking as a guest lecturer at the Federal Radio Corporation of Nigeria, FRCN, 2016 Annual Lecture in Abuja.

“Nigerians are getting impatient and they are complaining that this change is not translating into what they are hoping for.

“We must do what we have to do to rescue our economy and to get the great Nigerian people back to work,” Mr Mailafai said.

He also advised the government to create an entrepreneurial state by encouraging innovation and generating critical public goods that would support creativity and high level productivity.

Besides, he urged government to pursue economic policies within the framework of a coherent and credible development strategy, with a greater coordination between fiscal and monetary authorities.