The IMF has made recommendations to Nigeria including increasing non-oil revenue, introducing exchange rate flexibility, and gradually eliminating fuel subsidies. The IMF has engaged with several countries in sub-Saharan Africa through loans, advisory services, and economic reviews. Nigeria's 2016 budget projects a fiscal deficit of 2.16% of GDP, and the IMF's endorsement would help Nigeria's international borrowing plans.

1. Nigeria & The IMF
January 05, 2016
Channels TV

2. + IMF and Nigeria
 IMF has 188 member countries
 Primary mandate is to ensure the stability of the
international monetary system
 Nigeria joined the IMF on March 30, 1961
 Nigeria has an SDR quota of 0.74% and voting share of
0.72%

3. + IMF Recommendations in 2015
 Sharp decline in oil prices vs. government
dependency
 Need to boost non-oil revenue mobilization (e.g.
Increase in VAT rate)
 Introduce exchange rate flexibility and further fiscal
adjustments
 Independent price setting mechanism for oil prices
 Gradual elimination of fuel subsidies

4. +
IMF Recent Engagements in SSA
Country Financial Assistance Surveillance PSI
South Africa X X
Angola X X
Kenya X X
Ghana X X
Zambia X X
Mozambique X
Nigeria X
Uganda X
Financial assistance: Provision of loans to member countries to correct balance of
payments problems
The Policy Support Instrument (PSI): non-financial advisory and support services to
low-income countries
Surveillance: The review of country policies and advisory on policies that will foster
economic stability

5. +
IMF Recent Engagements in SSA
Country Type of Loan Amount Purpose
Ghana ECF $918m External Balance
adjustment
Mozambique SLF $286m External Balance
adjustment
Kenya SLF $668m Precautionary
Motive
Sierra Leone ECF $102m External Balance
adjustment
Liberia RCF $45.6m External Balance
adjustment
SLF- Standby Credit Facility; ECF- Extended Credit Facility; RCF- Rapid Credit Facility

6. +
Naira and the Exchange Rate
 External reserves now below $29bn
 IFEM: N199.35/$
 Parallel market: N264/$
 Purchasing Power Parity (PPP) value: N221.26/$
 Gradual adjustment is inevitable
 Nigerian citizens to be protected by Social Intervention
Programs

7. +
2016 Budget
 Budget of N6.08trn
 Fiscal deficit of N2.22trn (2.16% of GDP)
 Borrowing: N1.84trn
 External borrowing: N900bn ($4.5bn)
 Sources: Eurobond market, Multilaterals, London & Paris
Clubs
 IMF endorsement, quality support and instrument would
create favourable grounds for international borrowing

8. +
Outlook
 Expect flat GDP growth in Q1
 Rise in inflation rate
 Improvement in power supply
 Another bailout for the states
 Exchange rate flexibility