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IMF knocks Buhari’s financial controls as killing businesses

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9 years ago

April 12, 2016

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THE International Monetary Fund has said that the forex control policies put in place by the government of President Muhammadu Buhari since 2015 is actually killing the economy.
In its staff report for 2016, IMF said the strategy of supporting a de facto exchange rate peg through exchange restrictions is significantly distorting the economy and weighing on economic activity.

The restrictions have served to protect certain sectors of the economy, but many other sectors are cutting production and shedding labor, resulting in cuts to investment and consumption. ”Foreign exchange shortages and the associated increase in the spread between the interbank rate and the rates on the BDC and parallel markets have also contributed to higher prices, undermining the desired anti-inflationary impact of the restrictions.

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“In staff’s view, a more flexible regime would facilitate attempts to diversify the export base and permit the economy to adjust more smoothly to changes in fundamentals, lowering the potential for episodes of exchange rate misalignment and reducing reliance on reserves to buffer external shocks.”

It said while progress has been made in the fight against terror group, Boko Haram and war against corruption, but the delay in appointing his cabinet for about six months has limited the scope for a timely and comprehensive policy response to the oil price shock.

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1 Comment

Izon Redeemer
May 2, 2016 at 3:53 pm
Reports filtering in indicates that Mr. Robert Azibaola detained by the Economic & Financial Crimes Commission (EFCC) may have died in the Lagos EFCC detention centre.
Sources say his death over the weekend may not be unconnected to his sudden degenerating health condition which led to his collapse twice in the last one week.
Azibaola as at the time of his demise was still been held by the EFCC in its custody weeks after an Abuja High Court had granted him bail.
In the last three weeks the EFCC had consistently tortured Mr. Roberts while also denying him access to his immediate family, lawyers & doctor.
Just last week, Azibaola’s family was alerted by an anonymous insider of a sinister plot by the EFCC to poison Mr. Robert because he refused to co-operate with the plan of the present administration to implicate Ex-President Jonathan in a premeditated corruption hoax.
The EFCC is yet to issue any statement on the whereabouts of Mr. Robert who has been in detention despite meeting all bail conditions since 7th April, 2016.
No one has seen him since Thursday last week-not even his lawyers or family members. They should show him live on TV and stop every clandestine activities. In addition to that, if they decline to bring him out on live TV, they should quietly release him to his family and let him get the required medical attention. The EFCC should not be seen as partisan and stop playing games with the lives of Nigerians.
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