Nigeria 
Nigeria heads out of IMF and into independence

afrol News, 10 March - The Nigerian government has opted for economic independence and a policy it can defend towards its "recently democratised" populace. After withdrawing from the International Monetary Fund (IMF), Nigeria is now free to impose high import duties on consumer goods to protect national manufacturing.

The government of Nigeria on Tuesday announced its formal withdrawal from an IMF-monitored economic programme to enable it pursue a home grown alternative it believes is in the interest of its people. Nigeria had been cooperating with the IMF and the World Bank since the return of democracy with the establishment of President Olusegun Obasanjo in 1999. The IMF was invited to check Nigeria's macro-economic policies, a service performed until February this year. 

The government announced it had no interest in continuing "arrangements where only narrowly defined macro-economic targets come into play." The Nigerian Minister of Finance, Adamu Ciroma, was quoted by IPS saying "the macro-economic targets should be people-oriented to enhance political stability''.

- Because the government values the benefits of political stability, democratic consolidation, credibility and accountability, it does not for the government not to commit to policies that could prove difficult to fully implement, Ciroma added. "This has led to the discontinuation of the informal monitoring framework."

Given this new liberty, the Ministry already has announced a series of new import regulations to protect local industries and increase government revenue. Protectionist taxes ranging from 100 to 150 percent were placed on imported luxury items such as cigarettes, furniture, soaps, candles and drinks. The country had been flooded with cheap, imported goods, leading to closures in several manufacture industries. 

The IMF, on the other hand, last week published its last report on the macro-economic situation in the country, originating from an IMF staff mission visiting Nigeria since 25 February. The analysis turned out rather negative, criticising the government's high spending, which "could well exceed the government's resources, thereby generating inflation and hurting the poor."

The "current environment" of high government spending, had led to the "discontinuation of the informal monitoring of the present set of economic policies," the IMF stated. The Fund's External Relations Department however said it supported "the government's resolve to devise a home-grown program, taking account of Nigerian realities," but urged that this program "be strong and designed to help achieve Nigeria's social and economic objectives." 

The Manufacturers Association of Nigeria welcomed the discontinuation of the IMF-Nigeria cooperation. The Fund's prescriptions had not been working for Nigeria as they were "stereotyped". Other voices were however heard in Nigeria, claiming the discontinuation was only political propaganda and that Nigeria, theoretically wealthy on oil, needed the transparency provided by cooperating with the IMF.

Sources: Based on IMF, IPS, Nigerian govt and afrol archives

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