Christine Lagarde, Managing Director of the International Monetary Fund (IMF) arrived Nigeria on Monday to begin discussions on the country’s distressed economy.
Largarde touched down at the Abuja Nnamdi Azikiwe International Airport at about 2.45 pm in a white private jet and was received by the governor of the Central Bank of Nigeria (CBN) Godwin Emefiele and the finance minister Kemi Adeosun, both of whom were accompanied by some topofficials of their institutions.
The visit holding between January 4 and 7 will be Lagarde’s sec ond to Nigeria after the earlier one in December 2011.
On arrival, Lagarde could not speak to journalists who were anxiously waiting for her at the airport but was only allowed to take pictures. However, BusinessDay had exclusively reported her coming which primarily focuses on how the IMF can help Africa’s largest economy sustain its economy and quickly move out of an impending economic distress triggered by incredibly lowering oil prices.
Lagarde will at 12 noon today meet with President Muhammadu Buhari who has been battling to save the economy from collapse as government revenues shrink.
She will afterwards hold a press conference at the Presidential Villa. There is word in the finance circuit that the IMF chief will proffer suggestions on
quick diversification of the economy, but may try to convince Buhari on the devaluation of the local currency, which the President says he still does not believe in.
“I look forward to productive meetings with President Buhari and his colleagues as they address important economic challenges, most importantly the impact of low oil prices,” an IMF statement quoted Lagarde to have said ahead of her trip.
Oil prices at a low of about $37 per barrel have heightened threats to Nigeria’s revenues and strained the FX position of Africa’s largest economy.
The IMF projects that crude oil prices may slump to an all-time low of $20 per barrel in 2016, raising concerns on Buhari’s ability fund the record N6.08 trillion proposed budget and deliver his campaign promise of pulling back the economy from a slide into collapse.
“Nigeria is working hard to improve its business environment, promote opportunities for growth in the private sector, and strengthen social cohesion, all areas where the government has an important role to play.”
The IMF said in the statement that Lagarde’s visit to Nigeria will provide an opportunity to strengthen the Fund’s partnership with the largest economy in sub- Saharan Africa.
According to the itinery of her visit seen by BusinessDay, Lagarde will also have lunch with Nigeria’s economic team, the private sector representatives today and then dinner with women leaders at different times.
On Wednesday, she will meet with Emefiele in the morning and later have a breakfast meeting with managing directors of commercial banks. She will also meet with other senior leaders, along with business leaders, prominent women and representatives of civil society. She will also meet with legislators.
She will depart Nigeria for Cameroon, to meet President Paul Biya and his economic team, as well as private sector executives, women leaders, and other members of Cameroonian society. She will also meet with Finance Ministers from the six member countries of the Economic and Monetary Community of Central Africa (CEMAC), delivering a speech to the group on January 8.
“As the largest and most diversified economy in CEMAC, Cameroon is well placed to sustain, and reinforce, the momentum of integration,” Lagarde said.
“The country and the entire CEMAC region are confronted with the twin shocks of the oil-price slump and a surge in disruptions related to security. Reinforcing regional integration and implementing ambitious reform agendas in CEMAC countries will be key to secure macroeconomic stability and restore strong and inclusive growth in the region.”
