Posted on 10-3-2002

Nigeria Rejects IMF Programme
(Photo shows Minister of Finance, Mallam Adamu Ciroma L, and Mallam Shehu
Malami R, former Nigerian High Commissioner to South Africa)

ABUJA, March 5 2002 (AFP) - The Nigerian government on Tuesday withdrew rom
a formal International Monetary Fund (IMF) monitored programme, an official
statement by the presidency said.

Nigeria took the decision "because it values the benefits of political
stability, democratic consolidation, credibility and accountability," said
the statement. "It does not wish, therefore, to continue with arrangements
where only narrowly defined macroeconomic targets come into play," said the
text signed by presidential spokesman Tunji Oseni.

From July 2000 to June last year, the government was involved in a Standby
Arrangement with the IMF, an official statement by Finance Minister Adamu
Ciroma said Tuesday. After that arrangement ended, the government agreed to
a monitoring arrangement with the international financial body which has
been in place since then, it said. Despite "measurable gains" made in the
last two and a half years, some real challenges have emerged, the minister
said. "These challenges, especially involving fiscal spending with adverse
effects on the foreign exchange rate, have caused the government to fall
short of some of its marcroeconomic targets," he stated. "The government
owes it to the people of Nigeria and secondarily to its external partners
to identify prudent economic objectives that the people of Nigeria can
support.

As Nigerians are new to the practice of democracy, the government needs to
come up with approaches that secure the support of a majority of the
National Assembly and the people of Nigeria for its macroeconomic targets
which have to be disciplined and credible, he also said. These targets
include low and stable consumer prices, a stable and sustainable foreign
exchange rate and a faster pace of economic growth, he explained. The
statement said that government would inform the nation's external partners
"that we will not be able to commit to a new programme at this time.
"Instead, we will wait until the (2002) budget is finalised and then
develop a serious, disciplined and credible programme," Ciroma also said.
"We trust that the people of Nigeria and our international partners will
understand and appreciate this decision we have taken," he concluded.

Analysts urge fiscal discipline for Nigeria after IMF break, March 6, 2002

LAGOS, March 6 (AFP) - Analysts Wednesday urged fiscal discipline and
economic prudency a day after Nigeria withdrew from a formal International
Monetary Fund (IMF) monitored programme. The Nigerian government said it
took the decision Tuesday "because it values the benefits of political
stability, democratic consolidation, credibility and accountability." "It
does not wish, therefore, to continue with arrangements where only narrowly
defined macroeconomic targets come into play," said presidential spokesman
Tunji Oseni in a statement.

But economic analysts said Wednesday Nigeria has to show financial
discipline and prudent management of its resources if it wants to stand
alone. "The decision will only be justified if Nigeria can prudently manage
its
vast oil and gas resources. There has to be a great deal of financial
discipline to do that," said political economist Pat Utomi. Stressing that
the IMF "does not claim to have a monopoly of wisdom", the director of
Lagos Business School said the Nigerian government can still initiate
programmes that the Bretton Woods institution may support. "The government
should get its priorities right by coming up with reasonable programmes
that lead to growth, poverty-reduction, improvement in social
infrastructures, and above all, exercise discipline in management of
resources," he added.