IMF report threatens FG’s $1.14bn foreign loan quest

IMF

Nigeria’s quest to borrow about $1.4 billion from international finance institutions may be under threat as the International Monetary Fund (IMF) has dismissed the government’s economic recovery plan as unsatisfactory.

According to a report, by IMF, the reform plans are not enough to bring the country out of recession.

Reuters news agency reports that the development could delay talks  over $1.4 billion in international loans.

The World Bank has been in talks with Nigeria for a loan of at least $1 billion for more than a year and the African Development Bank, AfDB, has $400 million on offer, but discussions have stalled over economic reforms.

Nigeria is seeking the funding for infrastructure investment and to help plug an expected record deficit in this year’s budget as it boosts spending to try to end a recession.

Muhammadu Buhari, Nigeria’s president, has rejected further devaluation of the currency.

According to the 68-page IMF report obtained by Reuters, the Washington-based fund will urge Nigeria, a major oil producer, to introduce immediate changes to its exchange rate policy.

It would also say its recent reform plan is not enough to drag Africa’s biggest economy out of recession.

“Much more needs to be done,” the IMF said in the document, written after a final meeting between its representatives and top officials in Abuja, Nigeria’s capital.