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  • IMF Proposes $50bn Trust Fund For Nigeria, Other Low, Middle-Income Countries

    IMF Proposes $50bn Trust Fund For Nigeria, Other Low, Middle-Income Countries

    The International Monetary Fund (IMF) is proposing a $50 billion trust fund for Nigeria and other low and vulnerable middle-income countries.

    In a blog post published on Thursday, it explained that the fund was targeted at helping countries in that category to build resilience and sustainability.

    “A proposed $50-billion trust fund could help low-income and vulnerable middle-income countries build resilience to balance of payments shocks and ensure a sustainable recovery,” said the Washington-based institution.

    “Even as countries continue to battle COVID-19, it is crucial not to overlook the longer-term challenge of transforming economies to become more resilient to shocks and achieve sustainable and inclusive growth.

    “The pandemic has taught us that not addressing these long-term challenges in a timely manner can have significant economic consequences, with the potential for future balance of payments problems.”

    The fund comes as part of the $650 billion Special Drawing Rights (SDRs) – an equivalent of about SDR456 billion – issued by IMF in August last year to help vulnerable countries boost liquidity through Resilience and Sustainability Trust (RST).

    Daybreak.ng had reported then that Nigeria was allocated about $3.35 billion of the sum, as part of the historic general allocation of SDRs of the IMF.

    The amount allocated to Nigeria is as a result of the exchange rate of reference which is 0.702283 SDR to a dollar, and Nigeria has 2.4545 billion SDRs as of July 1, 2021.

    In its latest blog post, the financial institution identified climate change as another long-term challenge that threatens macroeconomic stability and growth in many countries through natural disasters and disruptions to industries, job markets, and trade flows, among others.

    It believes it is the shared responsibility of individual countries and the international community to overcome these global public policy challenges and it is time to take appropriate actions.

    “In a previous blog, we explained how the IMF is considering options for channelling some of the $650 billion SDRs issued in August 2021 from countries with strong external financial positions to vulnerable countries through a Resilience and Sustainability Trust, or RST,” it said. “The RST’s central objective is to provide affordable long-term financing to support countries as they tackle structural challenges.

    “As we’ve continued to work toward developing the RST, our current thinking on the key design features—which we outline further below—aim to balance the needs of potential contributors and borrowing countries.

    “With broad support from the membership and international partners, we hope that the Trust can be approved by the IMF Executive Board before the upcoming spring meetings and for it to become fully operational before the year’s end.”

  • IMF Approves Final Round Of Debt Relief For Poor Countries

    IMF Approves Final Round Of Debt Relief For Poor Countries

    The IMF said Monday it had approved the fifth and final round of debt relief under a program meant to help the world’s poorest nations weather the Covid-19 pandemic.

    The $115 million in relief under the Washington-based crisis lender’s Catastrophe Containment and Relief Trust (CCRT) affects debt service payments falling due for 25 member states between January 11 and April 13 of next year, the IMF said in a statement.

      In the statement, the IMF said its directors view the CCRT relief as having “helped its poorest and most vulnerable members to free up resources to tackle the pandemic and its repercussions,” though they warn not all money pledged for the trust has been received.

      The CCRT enables the IMF to provide grants to the poorest and most vulnerable countries hit by a natural disaster or public health crisis, and was tapped by the fund in April 2020 to aid the response to the Covid-19 pandemic.

      AFP

  • IMF Urges Nigeria to Fully Remove Fuel Subsidies Early 2022

    IMF Urges Nigeria to Fully Remove Fuel Subsidies Early 2022

    Contrary to the federal government’s plan to remove subsidy on petrol in the second half of next year, the International Monetary Fund (IMF) has advised the Nigerian government to fully remove fuel subsidy and move to a market-based pricing mechanism in early 2022 as stipulated in the 2021 Petroleum Industry Act (PIA).

    The IMF, in its 2021 Article IV Mission statement released yesterday also projected that despite high oil prices, Nigeria’s fiscal deficit would widen in 2021 to 6.3 per cent of Gross Domestic Product (GDP).

    Fiscal deficit is projected at 3.93 per cent and 3.39 per cent of GDP in Nigeria’s 2021 and 2022 budgets respectively.

    The IMF, in the report said: “The complete removal of regressive fuel and electricity subsidies is a near-term priority, combined with adequate compensatory measures for the poor.

    “In addition, the implementation of cost-reflective electricity tariffs as of January 2022 should not be delayed. Well-targeted social assistance will be needed to cushion any negative impacts on the poor particularly in light of still elevated inflation.

    “Nigeria’s past experiences with fuel subsidy removal, which have all been short-lived and reversed, underscore the importance of building a consensus and improving public trust regarding the protection of the poor and efficient and transparent use of the saved resources.”

    The IMF observed that there were significant downside risks to the near-term fiscal outlook from the ongoing COVID-19 pandemic, weak security situation and spending pressures associated with the electoral cycle.

    According to the IMF, over the medium term, without bold revenue mobilisation efforts, fiscal deficits are projected to stay elevated above the pre-pandemic levels with public debt increasing to 43 per cent in 2026.

    It stated: “With the emergence of fuel subsidies and slow progress on revenue mobilisation, the fiscal outlook faces significant risks. Continued reliance on administrative measures to address persistent foreign exchange shortages is negatively impacting confidence.”

    The IMF observed that the Nigerian economy “is recovering” from a historic downturn benefiting from government policy support, rising oil prices and international financial assistance.

    It noted that the Nigerian authorities’ pro-active approach had contained the COVID-19 infection rates and fatalities, adding that with the emergence of fuel subsidies and slow progress on revenue mobilisation, the fiscal outlook faces significant risks.

    IMF said: “The economy is recovering from a historic downturn. Helped by government policy support, rebounding oil prices and international financial aid, Nigeria exited the recession in 2020 Q4, earlier than expected. Output rose by 5.4 per cent (y-o-y) in the second quarter, mainly reflecting base effects from transport and trade sectors and continued strong growth in the IT sector.

    “However, manufacturing and oil sectors remain weak, reflecting continued foreign exchange shortages, and security and technical challenges. Headline inflation rose sharply during the pandemic reaching a peak of 18.2 per cent y-o-y in March 2021 but has since declined helped by the new harvest season and opening of the land borders.

    “Reported unemployment rates are yet to come down although COVID-19 monthly surveys show the employment level to be back at its pre-pandemic level.

    Noting that the outlook is for a subdued recovery, the IMF observed that while Nigeria’s real GDP is projected to grow by 2.6 per cent this year and continue in the range of 2.6-2.7 per cent per annum over the medium term, “this is just above the population growth rate implying stagnant per capita income in the medium term.”

    Despite an ease in food prices, it said inflation is projected to remain in double-digits, in the absence of monetary policy reforms.

    It also alluded to significant downside risks to the near-term outlook arising from the uncertain course of the pandemic and the domestic security situation, in the medium term.

    It added that there were upside risks from faster-than-expected reaching of the Dangote refinery’s production capacity along with effective implementation of the 2021 Petroleum Industry Act in terms of higher manufacturing production and investment in the oil sector.

    IMF called for major reforms in fiscal, exchange rate, trade and governance to alter what it described as “the long-running lackluster growth path.”

    The IMF listed near-term priorities for Nigeria to include the implementation of e-customs reforms, including efficient procedures and controls, developing a Value Added Tax (VAT) compliance improvement programme, improving compliance across large, medium, and micro/small taxpayers and rationalising tax incentives and customs duty waivers. the recent passage of the PIA and stressed its timely implementation.

    It stated that preliminary assessments by the IMF and the World Bank suggest that the approved fiscal terms would provide greater incentives to invest in the oil and gas industry but would reduce the fiscal take from new and converted fields.

    On exchange rate policy, the IMF called for reduced administrative measures and room for a market-clearing unified exchange rate.
    It also endorsed steps taken toward unification of the exchange rate and stressed the need for further actions.

    The Fund stated: “The discontinuation of the official exchange rate is a step in the right direction, but continued dependence on administrative measures to address FX shortages sustains uncertainties and increases the risks of a sudden and large adjustment in the exchange rate.

    “To preserve competitiveness, any exchange rate adjustment should be accompanied by clear communications regarding exchange rate policy going forward, macroeconomic policies to contain inflation and structural policies to facilitate new investment.
    “A further move toward a market-clearing exchange rate will also help build foreign exchange buffers through higher capital inflows.”

  • FG in Talks with IMF on Repayment Terms of $3.4bn SDR – Finance Minister

    FG in Talks with IMF on Repayment Terms of $3.4bn SDR – Finance Minister

    The federal government is negotiating with the International Monetary Fund (IMF) on repayment terms for the $3.4 billion extended to Nigeria under the Fund’s global $650 billion Special Drawing Right (SDR).

    As part of further measures to enable member countries cope with the devastating effects of the Covid-19 pandemic, the IMF in had August approved $650 billion in SDR, out of which Nigeria received $3.4 billion based on its quota contribution and economic standing.

    But the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed recently that although the money has already been released to Nigeria through the Central Bank of Nigeria (CBN), discussions on the terms of repayment were still ongoing with the IMF.

    Responding to a question at the public presentation and breakdown of the 2022 budget proposals, the minister stressed that negotiations on the terms of repayment were ongoing with the multilateral institution.

    Ahmed explained that the SDR fund has a very concessional window, disclosing that the $3.4 billion would be part of the 2022 External Borrowing Plan.

    The finance minister also revealed that the federal government was to evaluate the process and policy effectiveness of fiscal incentives, including a review of sectors eligible for Pioneer Tax Holiday Incentives under the Industrial Development Income Tax Relief Act (IDITRA).

    The principle of pioneer status as a tax incentive relieves sectors designated as pioneers from paying company income tax in their formative years to enable them to make a considerable profit for re-investment into the business.

    The pioneer status is administered by the Nigerian Investment Promotion Commission (NIPC).

    The federal government had in 2017 approved additional 27 industries and products to enjoy the pioneer status, including mining and processing of coal; processing and preservation of meat/poultry and production of meat/poultry products; manufacturers of starches and starch products; processing of cocoa; manufacture of animal feeds; tanning and dressing of leather, manufacturers of leather footwear, luggage and handbags; manufacturers of household and personal hygiene paper products and manufacturers of paints, vanishes and printing ink.

    Others were manufacturers of plastic products (builders of plastic wares) and moulds; manufacturers of batteries and accumulators; manufacture of steam generators; manufacturers of railway locomotives, wagons and rolling stock; manufacturers of metal-forming machinery and machine tools, manufacturers of machinery for metallurgy, manufacturers of machinery for food and beverage processing.

    They also included manufacturers of machinery for textile, apparel and leather production; and manufacturers of machinery for paper paperboard production.

    Manufacturers of plastics and rubber machinery; players in waste treatment, disposal and material recovery; e-commerce services; software development and publishing; motion pictures, video and television programme production, distribution, exhibition and photography; music production, publishing and distribution were included

    Also on the list were real estate investment vehicles under the Investments and Securities Act; mortgage-backed securities under the Investments and Securities Act; and business process outsourcing.

    On the review of the 2022-2024 Medium Term Expenditure Framework (MTEF) which led to the recent upward adjustment of the 2022 appropriation bill from N13.98 trillion to N16.4 trillion, the minister said the revision became imperative to reflect the new fiscal terms in the Petroleum Industry Act (PIA) 2021, as well as other critical expenditure in the 2022 proposed budget.

    But she was quick to point out that the fiscal effects of the PIA’s implementation expected to take effect from January would kick in mid-2022.

    She said: “The revised 2022-24 Fiscal Framework is premised on hybrid of January-June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA.”

    The minister, who also spoke about government’s revenue drive initiatives added: “Our target over the medium term is to grow our revenue-to-GDP ratio from about 8–9 per cent currently to 15 per cent by 2025.

    “At that level of revenues, the debt-service-to-revenue ratio will cease to be a critical concern. It is now critical to fix our revenue challenge, because cutting expenditure is not currently a viable option, as our public expenditure /GDP ratio is also the lowest among some Africa’s leading economies.

    “We must however continue to rationalise our expenditures as we cannot afford waste. In reality, our largest expenditure items are currently personnel cost debt service and capital expenditure, which between them account for 85 per cent of the 2022 budget.”

    According to her, the most viable solution to the nation’s fiscal challenges was to grow revenues and plug all leakages

  • Facing High Debt, Countries Must ‘Calibrate’ Spending – IMF

    Facing High Debt, Countries Must ‘Calibrate’ Spending – IMF

    After debt loads surged last year amid the pandemic, governments now must take care to ‘calibrate’ spending, the IMF said Wednesday.

    Global debt in 2020, including public and private borrowing, “jumped by 14 per cent to a record-high $226 trillion,” according to the International Monetary Fund’s Fiscal Monitor report.

    Public debt amounts to $88 trillion, close to 100 percent of GDP, and is expected to decline only gradually, said Vitor Gaspar, director of the IMF’s Fiscal Affairs Department.

    But there is a risk excess private debt will become public debt so “countries will need to calibrate fiscal policies to their own unique circumstances,” Gaspar said in a blog post about the report.

    Massive public support helped to soften the economic blow from the pandemic, as well as the health impact.

    Huge aid packages in the United States and Europe “could add a cumulative $4.6 trillion to global GDP between 2021 and 2026 if fully implemented,” Gaspar said.

    In advanced economies, with progress on containing the virus, spending is shifting away from the immediate crisis, towards green and digital policies and the effort to “make economies more inclusive.”

    For example, US budget proposals “aim to reduce inequality and could cut poverty by nearly one-third,” he noted.

    But emerging markets and low-income developing countries “face a more challenging outlook” and “long-lasting negative impacts,” as falling tax revenues due to the ongoing crisis will leave little room for investing in development, he said.

    He repeated the IMF call for continued support for the poorest nations dealing with high debt loads.

    “While recognizing that the international community provided critical support to alleviate fiscal vulnerabilities in low-income countries, more is needed,” he said.

  • SDR: IMF Allocates $3.35bn To Nigeria

    SDR: IMF Allocates $3.35bn To Nigeria

    Nigeria has been allocated about $3.35 billion as part of a historic general allocation of Special Drawing Rights (SDRs) of the International Monetary Fund (IMF).

    This is a result of the approval of a general allocation of about SDR456 billion – an equivalent of $650 billion – by the IMF Board of Governors on Monday.

    The allocation which was approved on Monday aims to boost global liquidity at a time when the world is grappling with the coronavirus (COVID-19) pandemic.

    “This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,” said IMF Managing Director, Kristalina Georgieva.

    Although it is not a currency, the SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.

    It is a potential claim on the freely usable currencies of IMF members and can provide a country with liquidity. The SDR is defined by the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.

    Supporting Pandemic Recovery

    The amount allocated to Nigeria is as a result of the exchange rate of reference which is 0.702283 SDR to a dollar as of July 1, 2021, and Nigeria has 2.4545 billion SDRs.

    “The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy,” the IMF managing director added.

    “It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.”

    According to the IMF, the general allocation of SDRs will become effective on August 23 and the newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.

    It stated that about $275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.

    Georgieva promised that the fund would continue to engage actively with its membership to identify viable options for voluntary channelling of SDRs from wealthier to poorer, and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth.

    One key option is for members that have strong external positions to voluntarily channel part of their SDRs to scale up lending for low-income countries through the IMF’s Poverty Reduction and Growth Trust (PRGT).

    The IMF said the concessional support through the PRGT was currently interest-free, adding that it was exploring other options to help poorer and more vulnerable countries in their recovery efforts.

    A new Resilience and Sustainability Trust could be considered to facilitate more resilient and sustainable growth in the medium term, it stated.

  • Covid-19 Third Wave, IMF And Nigeria’s Economy

    Covid-19 Third Wave, IMF And Nigeria’s Economy

    By Adefolarin A. Olamilekan

    Lately, we have been inundated with less than cheering news of possible third wave of COVID-19 in Nigeria. This comes on the heels of what is happening in some sub-Saharan African countries with the New Delta variant peaked in South Africa (83%), Zambia (92%), Tunisia (98%) and Namibia (100%).The Nigerian state in response appears to be mindful re-introduced restriction target at preventing a surge of the COVID-19 pandemic in the country. Consequently, the Nigerian authorities through the Presidential Task Force (PTF) and the National Primary Health Care Development Agency (NPHCDA) alongside the Presidential Steering Committee (PSC) took delivery of 3.92 million doses of the Oxford-AstraZeneca COVID-19 vaccine through the COVAX facility.

    According, to Thomas Reuters Global COVID-19 vaccination tracking portals as at June 302021 3.4 million doses of vaccine have been administered in Nigeria. Interestingly, two dosages are required by each person’s to be fortified against the virus. Yet, infection cases is 169, 000 as at the end the first and second wave, with death toll reaching 2, 214, and 164,000 recoveries so far.

    What is more is the fear of third wave of the corona virus and discovery of the New Delta Variant spread is worrisome and this dread could compound the third wave in sub Sahara Africa countries. Chiefly, with global scarcity of COVID-19 vaccine arising from high demand from western countries. In the meantime, grueling questions have been asked if the Oxford-AstraZeneca of the US AND UK, the Russian Sputnik-V, the Chinese Sinovac, Sinopharm, Cansino and Biologics vaccine rollout would help immunized against the New Delta strain now in ninety-six country.

    The International Monetary Fund (IMF) recently released a report title” Sub-Saharan Africa: We Need to Act Now”. The Bretton Woods institution expressed great concerns on some pertinent issues on what could reversed the gain so far recorded in Nigeria’s economic recovery in face of the COVID-19 pandemic. Off course, in recent time the effective entry of the countries of the Pacific Rim into the Bretton Woods system, though it has its own negative consequence. Pacific Rim countries have become a new force to reckon with in the multilateral financial institution going by their huge foreign reserves. Significantly, it is measure of this rising international financial status of formally harassed and harangued countries to minimize the role of their state in their economies that IMF co desperately engages them.

    In the face of massive empirical envidence, the IMF report showed the level of increased in the infection in third wave of COVID-19 in sub-Sahara Africa than anywhere in the world. Grippingly, IMF analyzed data on vaccinated persons in sub-Sahara Africa showed that in every 100 only one adult is fully vaccinated compared to an average of over 30 adults in every 100 in advanced countries. The IMF report considerably, was more concerned about the Nigerian situation, reporting that Nigeria with the largest population in sub-Saharan Africa countries vaccination story is not any way better than other SSAC .For instatnce, only 1.7 million Nigerians so far received the two doses representing a paltry 0.8% per cent of the current population of 208million.

    Besides, the IMF also reported that available supply of vaccines globally has been bought over by the advanced economies for there citizens. The report was more centered on the implications that could be imminent if urgent steps were not taken.”The cost of allowing a third wave of the pandemic may take the country back into recession in the coming quarters if taken for granted “the report read.

    The above warning is very instructive, if we recalled that the estimated economic loss arising from the disruption from COVID-19 stood at N3 trillion, with Gross Domestic Product (GDP) contracting by 1.9% per cent in 2020. Regrettably, the level of inflation in the economy is scourging with crushing food price upsurge that Nigerians on daily basis battle with.

    Understandanbly, the Nigerian economic recession partly is as result of COVID-19 pandemic and incidence of price shock on the crude oil in the international market. Interestingly, the advance effects of the pandemic on global economic negatively impacted the Nigerian oil sector been the prime factor of revenue for the Nigerian state. In the year 2020 the oil sector contribution to aggregate real GDP growth rate was 9.5% per cent in 2020.This was a blow on the health of the Nigerian economy pattern revealing a critical draw back on both fiscal and monetary policies.

    Obviously, it clear to articulate the ideological direction of the Nigerian economy going by the prevailing situation and concerns from IMF.IMF interest as a fundamental theology of market forces of neo-liberal orthodoxy fostering unilateral structural adjustment prescription is been resisted ,especially with Chinese in road into Sub-Sahara Africa with acceptable loan deals.Critically,we can grasp the import of the report by IMF and what underpins there interest in sub-Sahara Africa.Nonetheless,IMF should be commended for the report time intervention, most especially as the New Delta Variant as been discover in Oyo state now.

    However, it is not contestable that given the structural challenges of the Nigerian economy ranging from infrastructures paucity to the nation’s high import addiction foremost to huge naira abysmal depreciation and interruption of primary, secondary and tertiary production. Particularly, as the economy has struggle between two recessions in six years of the APC lead Buhari administration.

    Nevertheless, the Nigerian economy today remains on the self-propelling GDP growth from the oil sector masking the low performance of other sector of the economy. Possibly, the Nigerian state must be proactively balanced the fiscal and monetary policies as derivatives to ensure the economy remains steady in the face of probable third wave of covid-19 and beyond.

  • IMF Board Approves $2.3bn Aid Package For Kenya

    IMF Board Approves $2.3bn Aid Package For Kenya

    The IMF on Friday approved a $2.34 billion aid package to Kenya to “address the urgent need to reduce debt vulnerabilities,” the institution said in a statement.

    The Washington-based development lender said the funds would be spread over 38 months, with an immediate disbursement of about $307.5 million, “usable for budget support.”

    “Kenya was hit hard at the onset by the Covid-19 pandemic,” the International Monetary Fund said, highlighting the country’s “forceful policy response” that led to an economic recovery in 2021 after a slight contraction in GDP in 2020.

    But the crisis has also exacerbated “pre-existing fiscal vulnerabilities.”

    “Kenya’s debt remains sustainable, but it is at high risk of debt distress,” the statement said, adding that “fiscal and balance-of-payments financing needs remain sizable over the medium term.”

    Antoinette Sayeh, IMF deputy managing director, called the aid “a strong signal of support and confidence” but noted it is “subject to notable risks, including from uncertainty about the path of the pandemic.”

  • Dangote Refinery Can pull Nigeria Out Of Economic Recession – IMF

    Dangote Refinery Can pull Nigeria Out Of Economic Recession – IMF

    The International Monetary Fund, IMF, the global financial watchdog, is projecting that Nigeria’s Dangote Refinery would provide an elixir for the country’s economy when it is completed and start production by 2022.

    In its latest report on Nigeria’s economy, the Fund raised the hope that the start of production from the refinery, solely owned by Africa’s richest man, Aliko Dangote could help Nigeria improve its Current Account balance.

    It said Dangote Refinery has “the potential to catalyze more domestic crude oil production and boost GDP growth.”

    “On the upside, the Dangote refinery, if commencing production in 2022 as planned, could meet the full demand for domestic consumption of refined petroleum products—which are almost all imported at present—thereby improving the CA balance.

    “With crude oil for local refining not subject to the OPEC quota, the refinery also has the potential to catalyze more domestic crude oil production and boost GDP growth,” the IMF wrote in its Article IV report on Nigeria’s economy released on Monday.

    Many experts have also projected that the refinery, which may cost Dangote about $15 billion to complete is capable of helping to save Nigeria huge foreign exchange in fuel importations.

    The 650,000 capacity Dangote Refinery, is regarded as one of the world’s biggest oil refineries and could end the irony of Africa’s biggest oil producer importing estimated $7 billion of fuel yearly, and instead see it meeting its own needs and supplying neighboring nations.

    Renaissance Capital in a report in 2018 projected that Dangote Refinery has the potential to revolutionize Nigeria’s economy, with its operations adding $13 billion, or 2.3 percent to the nation’s Gross Domestic Product (GDP).

    Dangote Refinery, which is described as Nigeria’s largest-ever industrial project, boasts of a distillation column for separating crude into various fuels at different temperatures that is the largest of its kind in the world.

    The 650,000 barrel-per-day refinery is just part of a $15 billion petrochemical complex that will also house a gas processor and the world’s biggest plant for ammonia and urea, which is used in making plastics and fertilizer.

    Already, the Fertiliser plants is said to be ready and could be commissioned any time to add to the agricultural revolution not only in Nigeria but in some parts of Africa to boost the continent’s economy.

    The optimism by the global financial watchdog on the potential of Dangote refinery is a victory to the resilient of Africa’s richest man’s contributions to the economic emancipation of Nigeria and the continent at large.

    Dangote’s initial plan to enter the refining business was frustrated by government policy flip-flops when in 2007 he bought one of the country’s refineries under the privatisation programme of the then President Olusegun Obasanjo administration.

    However, the dream was short-lived as the entire process of privatization was swiftly reversed by the successive government that came after Obasanjo.

    Today, Dangote’s quest to play in the oil refining business is gradually coming to pass with the impending completion of the plants in the Lekki export free trade zone and the accolade from the global financial watchdog.

  • COVID-19: IMF approves establishment of Short-term liquidity line for countries

    COVID-19: IMF approves establishment of Short-term liquidity line for countries

    The International Monetary Fund (IMF) has approved the establishment of a Short-term Liquidity Line (SLL) to further strengthen the global financial safety net as part of the Fund’s COVID-19 response.

    Ms. Kristalina Georgieva, Managing Director of the IMF said this in a statement issued on Thursday.

    Georgieva said the facility was a revolving and renewable backstop for member countries with very strong policies and fundamentals in need of short-term moderate balance of payments support.

    She said in these cases, the Short-term Liquidity Line would provide revolving access of up to 145 per cent of quota.

    “The Short-term Liquidity Line will strengthen further a country’s liquidity buffers and thus help in managing liquidity pressures.

    “Complementing other instruments during the current crisis, the facility will fill a critical gap in the Fund’s toolkit and help to facilitate a more efficient allocation of resources.” she added. (NAN)