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B N W: Biafra Nigeria World News |
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IMF pledgeas to help govt recover looted funds � Calls for reduction in inflationary rate GBENGA OGUNTIMEHIN, Abuja THE International Monetary Fund (IMF) has called for drastic reduction in the country�s inflation rate and promised to support the Federal Government�s efforts to recover looted funds stashed in foreign banks. IMF Managing Director, Mr. Rodingo de Rato who made the pledge in Abuja on Tuesday said a reduction in the current high inflation was the only means to attract foreign investments. Speaking at an interactive session with some members of the country�s business community, the IMF chief who described the present high rate of inflation as a disincentive to private investment declared: "Adopting sound anti-inflationary policies are very essential to attracting private sector investment,�� he said. The session was also witnessed by members of President Olusegun Oba-sanjo�s economic team. De Rato said IMF had observed that African countries that succeeded in stabilising their macro economic situations achieved sustained rate of economic growth. He called on the country to establish a home-grown economic programme in line with its political and social needs. He said that the fund was working closely with the Nigerian government to design and implement the ongoing reform programmes which he described, as "comprehensive.�� De Rato said IMF was closely monitoring the administration�s reform programmes and expressed optimism that it would succeed. In her remarks, the Minister of Finance, Mrs. Ngozi Okonjo-Iweala, said the country recently received one of the "best and positive" assess-ments from the board of IMF. She said Obasanjo�s administration was working hard to channel resources to the real sectors of the economy in order to create jobs. Also answering reporters� questions at the end of his visit to Nigeria, De Rato who urged that every possible means should be employed to eradicate corruption in the economic life of most countries. De Rato observed that IMF was not happy with the looted funds but would support Nigeria in any step to recover the money. He said that Nigeria should liberalise her economy to attract more domestic and international investors, stressing that the recent hike in the capital base of banks was an effort considered by the Central Bank of Nigeria to sanitise the banking system. The IMF boss commended Nigeria�s new programme, explaining that the structural reform efforts of the present administration had been positive since mid-2003. According to him, several initiatives to improve oil sector efficiency and enhance public sector transparency and accountability were introduced as part of NEEDS. He said the price subsidy to NNPC on its domestic crude allocation was eliminated in October 2003 while prices on retail petroleum products were liberalised. De Rato also recalled the participation of the country in the Extractive Industries Transparency Initiative (EITI) and the agreement to participate in African Peer Review Mechanism of the New Economic Partnership for African Development (NEPAD) and the G8 Transparency Initiative, all these, he considered as trade protection and frantic efforts to enhance its economic growth. The IMF chief noted that confidence in the Nigerian economy had improved since the elections and with the appointment of the new economic team. De Rato said he had agreed with the Federal Government on the importance of the timely finalisation and passage of the Fiscal Responsibility Bill as, according to him, would provide the legal foundation for fiscal prudence and transparency at all levels of government in the country. Meanwhile, Okonjo-Iweala has said the country was not owing the International Monetary Fund (IMF) and could not take anything that was not concessional. At an interactive session between IMF officials and Nigeria�s business community in Abuja, the minister debunked the insinuations that the country was owing IMF and World Bank along with other creditors. She revealed, "we have never consulted them for our policy. We only need IMF for technical assistance." Okonjo-Iweala said government was pursuing those conditions for debt relief which include track record of sound financial management, track record of sound management of oil revenue well implementation of the home-grown policy, ability to manage macroeconomic stability and need for short term policies. The minister assured that government would pursue its economic goals to ensure that the target of revamping the economy was met. Earlier, Managing Director of IMF, Mr. Rodrigo de Rato said Nigeria still lacks credibility and could only overcome the bottleneck through proper investment need and a policy that can attract short term. He said the IMF had designed trade facilities to help certain countries have a positive and enhanced economy and also help negotiate agreement in more developed countries. This, the IMF boss said would be a measure to develop their products and meet global competition. Protectionism, De Rato said, is not the way out in trade development issues. He said the issue of debt forgiveness would be redressed by the fund adding that international communities have also offered useful suggestions on debt forgiveness. The IMF boss called on Nigeria to develop market access for its products and should come in the direction f infrastructures. The IMF chief said an agreement was reached with the Nigerian government that development of a treasury bill market would be helpful in restructuring the domestic debt and reducing rollover risks. |
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