Historically, Nigeria had always turned to the International Monetary Fund (IMF) for financial assistance to address deficiency of project payments and economic challenges like trying to stabilize the Naira or implementing crucial economic reforms. Although, IMF Loans provide beneficial reliefs at a time of critical needs, but oftentimes, it comes with strict conditions that inhibit the flexibility of domestic/economic policies.
However, with a determination to resuscitate the glory of the Nigeria economy, President Bola Ahmed Tinubu (PBAT) is not leaving any stone unturned. This determination is what keeps motivating him from the inception of this administration to ensure that all economic inhibitors, especially the external ones like the IMF Loans are cleared off. To this end, it is a big relief to hear that PBAT has finally settled all the debts Nigeria is owning the IMF with all necessary documents signed and counter signed this past week.
Repaying these loans in full will, no doubt, bring about significant economic and political benefits that would contribute to long-term national stability and economic growth.
First and foremost, the full repayment of the loans will reduce Nigeria’s debt obligations and trim down the burden of servicing interests. All of this would free up national revenue for investments in critical sectors like transport infrastructure, healthcare, and education rather than the endless servicing of debts. It will improve fiscal space and allow the government to implement more development-oriented policies.
Secondly, the full repayment would enhance the status of Nigeria’s international creditworthiness, which will in turn send a signal to global investors, credit rating agencies, and financial institutions that Nigeria has now become a responsible economy and more committed to debt management. No doubt, this move would boost the confidence of international investors and as such would improve Nigeria’s chance of attracting more and more foreign direct investments (FDI).
From the arguments presented above, the CSO's Strategist is confident that the country is on the verge of regaining full economic and protection of its sovereignty.
Reducing dependence on IMF loans can help Nigeria maintain its sovereignty and decision-making power over its economic policies Once this is regained, Policy Flexibility then comes in. Nigeria implements its own economic policies without being tied to IMF unconditionally, which often requires specific policy adjustments.
Nigerians would have a convenient economic space where they can confidently start a business on a small scale, nurture it, and then turn it into a medium and macro venture in the long run.
With PBAT Midas touch, Foreign, international and local Investors will now be Confident that Nigeria as a nation is committed to fiscal discipline that attracts more foreign investment.
As a civil society group, we would continue to commend President Tinubu administration economy policy for his bold steps and initiatives, we would also like to assure Nigerians that better days are close to sight. So we appeal to Nigerians to be a little more patient with PBAT as he is tirelessly working to lay a stronger economic foundation for citizens and investors to build macro ventures and mega businesses.
Thank you all and
Long live Federal Republic Of Nigeria.
For CSO'S strategist
Balogun Hameed
Convener
Frontline socio-economy Research centre (FSRC)
Co- Conveners
* Workbond international Network (WIN)
* Yoruba Youth Assembly (YYA)
* Congress of Nigeria youth League (CNYL)
* Lagos State Liberation Congress (LASLIC)
* People's Accountability and Transparency (PAT)
* Vanguard for Social Justice (VSJ)
* Centre for Human Rights (CHR)
* Centre for Peace Initiatives (CPI)
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