LAGARDE, MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND VISITS THE NIGERIAN SENATE, ADVISES NIGERIA ON WAY FORWARD

SENATE PRESIDENT WELCOMING MS. LAGARDE

THE MEETING

Today was eventful for the Senate of Nigeria when the Managing Director of the International Monetary (IMF) Ms. Christine Lagarde visited the distinguished Senators in their wing of the National Assembly. However, she did not meet all the members; among those present were the Senate President, Bukola Saraki, Shehu Sani, Dino Malaye, Rabiu Kwankwaso, Mohammed Goje, Binta Garba.

The Senate President Bukola Saraki welcomed Ms. Lagarde to the country and to the Senate; he also expressed happiness with her choice of Nigeria as her first official destination for 2016.

Speaking further, Saraki acknowledged the fact that Nigeria was experiencing difficult times as the country’s economy had taken a downturn with the falling oil prices but he said the country was resilient inspite of the challenges.

He went on to assure the IMF boss that the government of President Muhammadu Buhari and the members of country’s 8th National Assembly was up to the task of moving Nigeria's economy forward. He also acknowledged that the support of the IMF would be very essential in the bid to diversify the country’s economy and facilitate its growth. He noted that though the Senate was made up members from different parties, they were all resolute in their interest to grow the economy.

Responding, Ms. Lagarde said time was of the essence and Nigeria could not afford to waste time. She said her organization; the IMF was prepared to offer technical and other forms of assistance to Nigeria. She noted that Nigeria was likely to experience financial volatility as it made progress and recommended the new growth model developed by China, stating that global oil prices and global central banks interest rates will define the global economy going forward.

Ms. Lagarde said the Nigerian economy was experiencing remarkable diversification but the growth outlook for 2016 was not expected to be high. She said Nigeria had a massive footprint in the region with whatever happened in Nigeria affecting its neighbors.  She cited the case of terrorism in the geopolitical region as having a serious threat to economic development in the area.

She highlighted the need for Nigeria to take hard decisions on debt, expenditure, revenue adding that revenue realized from Nigeria's oil sales should be spent on its people.  She advised that the country should show resolve, resilience and restraint to grow its economy.

She also spoke on the issue of subsidies which she said studies had shown benefitted the rich by over 70% while the poor gained almost nothing and advised the subsidies which were still in place for kerosene and diesel should be tailored in a way to benefit those that needed it most.

She assured the Senators that the IMF could help Nigeria with technical assistance at both the Federal and State levels. She went on to advise that the country adopt a flexible exchange rate that can operate as a shock absorber against fluctuating currency prices, she also informed the members that the IMF was not in support of foreign exchange restrictions, stating that if they exist, they should only serve as temporary measure.

Ms. Lagarde recommended that Nigeria invest in quality infrastructure and ensure that the operations of the banks in the country contributed to its economic growth. She also said there was need for more investment in the energy sector to save business the extra cost brought about by the need to generate their power source. She further called for a resolute fight against corruption.