Nigeria: 5 takeaways from the 2019 World Bank/IMF Meetings

The Nigerian government is seeking support from the United Kingdom to float a ‘Jollof Bond.
From Nigeria’s point of view, we look at some of the key points at the just concluded World Bank Group/IMF meeting in Washington D.C.
Nigeria’s minister of finance, Zainab Ahmed, says the country is planning to create a database on debt and clearly matched each debt to specific projects.

The 2019 edition of the annual meetings of the World Bank Group and the International Monetary Fund ended in Washington, D.C. On Sunday, October 20th.

At the meeting, monetary and fiscal experts and leaders across the world discussed challenges in the global economy, growth, and investment, climate change, manufacturing sector, and poverty. Nigeria’s delegation was led by the country's finance minister, Zainah Ahmed.

From Nigeria’s point of view, here are the takeaways from the meeting:

Nigeria to float a ‘Jollof Bond’

Nigeria's Minister of Finance, Zainab Ahmed, said the government is seeking support from the United Kingdom to float a ‘Jollof Bond’ for key infrastructure development.

The ‘Jollof Bond’ is a debt instrument issued offshore but denominated in a local currency, ThisDay Newspaper quoted Mrs. Ahmed in a report. The bond will help both countries with FX rate exposure.

Nigeria to take $3 billion World Bank loan

The Nigerian government said it has secured a $3 billion World Bank loan to finance the power sector.

The Minister of Finance, Zainab Ahmed, stated this at the end of the World Bank/International Monetary Fund Annual Meetings in Washington D.C.

Ahmed said the funding will be provided in four tranches of $750 million each.

IMF asks Nigeria to unify its exchange rates

The International Monetary Fund (IMF) advised the Nigerian government to unify its exchange rates. Oya Celasun, IMF’s Divisional Chief, Research Department, said the foreign exchange restrictions have been distorting public and private sector decisions and holding back investment.

The Governor, Central Bank of Nigeria, Mr Godwin Emefiele, with the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, at the news briefing on Nigeria’s participation in the just-concluded World Bank/IMF Annual Meetings in Washington, United States on Sunday, Oct. 20, 2019. (NAN) Pulse Nigeria

But Godwin Emefiele, CBN governor, disagreed on the position of IMF chief, saying the country's fx policy was not affecting foreign direct investment.

On Border closure

IMF urged for a quick resolution so as not to take a toll on the economies of Nigeria’s neighbors.

According to a report by The Cable, the International Fund explained that the closure will help tackle illegal trade ahead of the full implementation of the Africa trade deal.

Debt transparency

Mrs. Zainab said Nigeria is planning to create a database on debt and put this in the public domain while also clearly matched each debt to specific projects.

According to the World Bank, rising debt levels pose a challenge to the global effort to end extreme poverty and achieve other Sustainable Development Goals by 2030.