IMF to monitor Nigeria’s 2005 budget
From Mathias Okwe (Abuja) and Hendrix Oliomogbe (Benin)
TO consolidate on the gains of the 2004 budget, the International Monetary Fund (IMF) has set up benchmarks to monitor the formulation and implementation of Nigeria federal budget next year.
Speaking at a teleconference with journalists in Washington D C, Abuja, Kampala, the Ugandan capital, and Libreville, capital of Gabon, the world lending body's Managing Director, Mr. Rodrigo de Rato, yesterday said that the benchmarks are to assist Nigeria consolidate the gains achieved from the economic reforms introduced this year.
Rato, who begins a working visit to Nigeria today, added that the IMF would help to make the country adopt a medium-term expenditure framework capable of checking rising inflation.
He stated that it was important for the Federal Government to continue its reform programme with a greater vigour to realise the full benefits of the fiscal and other economic reforms, as well as that of the civil service.
His words: "We believe that the 2005 budget will be a very good document consolidating the reforms and to adopt a medium-term expenditure framework, as well as to provide the Nigeria budgetary authority with modern framework to work in reduction of inflationary pressure."
He continued: "All that will come with a demanding total reform agenda focusing on issues like governance, civil service reforms, goal in the non oil sector are also important reforms in the financial sector."
With the extra revenue being raised from the sale of crude oil at the international market, De Rato warned against extra budgetary expenditure that could worsen inflation rate.
Inflation rate in the country is at present about 17.6 per cent.
The IMF chief said that his plan for Africa would be to collaborate with national governments to achieve macro-economic stability in the world's poorest region and a vigorous pursuit of the Highly Indebted Poor Countries (HIPC) initiative to reduce the external debt burden of African countries.
Meanwhile, a group, the Publish what you Pay Nigeria Coalition has called on de Rato to make transparency and accountability in the management of public finance its watchword.
In a press statement issued in Benin yesterday and signed by its co-ordinator, Mr David Ugolor, the group disclosed that it would meet with the IMF boss at a session to be chaired by the Federal Capital Territory (FCT) Minister, Mallam Nasir el-Rufai.
