IMF Apologizes To Nigeria As Experts Disagree With IMF’s Downgrade

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva on Monday in Washington DC allegedly regretted comments she made recently on the need for the federal government to consider the poor in its economic policies.

Georgieva’s purported regret came against the backdrop of comments by Senator Jimoh Ibrahim, who criticised the IMF over its “negative comments that lack supporting data” about Nigeria’s economy.

IMF had also questioned the federal government’s reforms and its impact on poor Nigerians during an inter parliamentary meetings.

However, Ibrahim, who represented the Senate at the World Bank Parliament in Washington, D.C., specifically challenged the World Bank institution over the negative comment on the Nigerian economy.

The senator further pressed Georgieva, demanding to know what President Tinubu had done wrong with ongoing reforms so far implemented since the president took over the helm of affairs in 2023.

He stressed that such misleading statements had the potential to harm the economy, and create instability in domestic management. 

Furthermore, Ibrahim argued that rather than condemnation, the international community needed to acknowledge Tinubu’s noble economic initiatives, especially tariff regulation, improved revenue ratio to GDP ratio, cash flow management relative to GDP, and debt repayment among others.

The senator said, “Madam IMF, in recent weeks, the IMF has criticised the Nigerian reform programmes with negative comments that lack supporting data. 

“Do you believe this is fair? Suppose we are to look inward to build a strong economy, as you suggested in your paper.

“Is it appropriate for the IMF to make untruthful comments about the domestic economy?

“Is the IMF the entity managing the economy?” Ibrahim also said Tinubu’s achievements should be considered a success for Africa, warranting worldwide support.

However, addressing the senator’s concerns, the IMF boss said, “We shall be mindful of our comments on Nigeria from now on. We are your IMF; we are sorry again.”

Ibrahim, thereafter, thanked the IMF MD for her straightforward comments and accepted her apology on behalf of the country. 

The Fund recently urged the federal government to ensure that its efforts to stabilise economy and boost growth are supported by measures that protect the country’s poorest citizens.

To ease the suffering of the poorest citizens, the IMF asked the federal government to expedite the completion of its cash transfer programme to support the vulnerable households.

According to the Director of the IMF’s Communications Department, Julie Kozack, the cash transfer is a crucial priority in the face of ongoing economic reforms.

“We do recognise the extremely difficult situation that many Nigerians face. For that reason, I just want to emphasise that completing the rollout of cash transfers to vulnerable households is an important priority for Nigeria, as is improving revenue mobilisation domestically,” Kozack said.