In Washington DC yesterday, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, expressed regret over recent remarks she made urging the Nigerian federal government to consider the welfare of the poor in its economic policies.
Georgieva’s apparent regret followed criticism from Senator Jimoh Ibrahim, who accused the IMF of making “negative comments lacking supporting data” about Nigeria’s economy.
The IMF had also raised concerns during inter-parliamentary meetings about the federal government’s reforms and their impact on impoverished Nigerians.
However, Ibrahim, who represented the Nigerian Senate at the World Bank Parliament meeting in Washington, D.C., directly challenged the global financial institution over its pessimistic assessment of Nigeria’s economy.
The senator further pressed Georgieva, demanding specifics on what President Bola Tinubu had done wrong in the economic reforms implemented since taking office in 2023.
He warned that such unsubstantiated statements could damage the economy and disrupt domestic economic stability.
Additionally, Ibrahim argued that instead of criticism, the international community should recognize Tinubu’s key economic measures, including tariff regulation, improved revenue-to-GDP ratio, effective cash flow management relative to GDP, and debt repayment efforts, among others.
The senator said, “Madam IMF, in recent weeks, the IMF has criticised the Nigerian reform programmes with negative comments that lack supporting data.
“Do you believe this is fair? Suppose we are to look inward to build a strong economy, as you suggested in your paper.
“Is it appropriate for the IMF to make untruthful comments about the domestic economy?
“Is the IMF the entity managing the economy?” Ibrahim also said Tinubu’s achievements should be considered a success for Africa, warranting worldwide support.
However, addressing the senator’s concerns, the IMF boss said, “We shall be mindful of our comments on Nigeria from now on. We are your IMF; we are sorry again.”
Ibrahim, thereafter, thanked the IMF MD for her straightforward comments and accepted her apology on behalf of the country.
The Fund recently urged the federal government to ensure that its efforts to stabilise economy and boost growth are supported by measures that protect the country’s poorest citizens.
To ease the suffering of the poorest citizens, the IMF asked the federal government to expedite the completion of its cash transfer programme to support the vulnerable households.
According to the Director of the IMF’s Communications Department, Julie Kozack, the cash transfer is a crucial priority in the face of ongoing economic reforms.
“We do recognise the extremely difficult situation that many Nigerians face. For that reason, I just want to emphasise that completing the rollout of cash transfers to vulnerable households is an important priority for Nigeria, as is improving revenue mobilisation domestically,” Kozack said.
She confirmed that the IMF’s First Deputy Managing Director, Gita Gopinath, had visited Nigeria earlier in March and met with key officials, including the Minister of Finance, Wale Edun, and the Governor of the Central Bank of Nigeria, Yemi Cardoso.
Last year, the IMF advised Nigeria to extend its cash transfer programme to rural areas in light of rising poverty and food insecurity.
The Fund has consistently urged the government to scale up the initiative as a means of helping poor Nigerians navigate the worsening cost of living crisis.
Recently, the World Bank stated that cash transfer programmes were essential in helping Nigerians escape intergenerational poverty, especially at a time when inflation and weak economic growth are hitting the poorest the hardest.
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