Nairametrics| If there is one thing the Buhari government isn’t going to do, it’s to go cap in hand begging for a loan from the International Monetary Fund (IMF). At least going by the latest comment from the Minister of Finance, Kemi Adeosun it has no immediate plans to do so.
The IMF spokesman Gerry Rice, has also just confirmed same according to a Reuters story. He confirmed that Nigeria has not requested for an IMF loan but “stands ready to help should the country make a request for financial assistance.”But the IMF did leave a stern message.
They want Nigeria to ratchet up economic reforms before the opportunity becomes limited. The limitation as you’ve guessed is the 2018 election. According to Gerry Rice
“Urgency is needed in implementing a coherent and credible package of monetary, fiscal and structural policies as the window for bold reforms is closing as the 2019 elections are approaching fast,”
Whilst some quarters believe that an IMF loans can be as cheap as 2% per annum, compared to 7.9% Eurobond, and will by default force Nigeria to implement hard reforms, other feel Nigeria does not need the IMF to implement reforms. IMF loans are often viewed with disdain by most emerging markets considering the baggage of austerity measures it typically comes with. Nigeria hasn’t borrowed from the IMF in over three decades and only relies on the institution for advisory support via the IMF’s Policy Support Instrument.
Nigeria’s minister of finance Kemi Adeosun has said that Nigeria doesn’t need an IMF loan because it does not have a balance of payment problem.