Forex crisis: Why Tinubu Govt should consider $30b IMF stabilization loan – Moghalu

Former Deputy Governor (Financial Stability) of the Central Bank Nigeria (CBN), Kingsley Moghalu, has urged the Nigerian federal government to consider taking up a $20-30 billion stabilization loan from the International Monetary Fund amid Nigeria’s continued foreign exchange crisis.

Moghalu made this call when he spoke at Tuesday’s 16th edition of the LEADERSHIP Annual Conference and Awards in Abuja.

He noted that solving Nigeria’s current economic challenges will take 3-5 years.

 

He added that the government should be required to weigh such a move’s potential benefits and drawbacks.

“I am suggesting carefully considering a $20-30 billion stabilization package from the International Monetary Fund (IMF).

“This is just an advice to the government because the current economic challenges are not what we can wriggle out of overnight; rather, it will take 3-5 years,” he added.

He says the country’s 2024 national budget of N28.7 trillion is filled with waste, noting a need for a proper audit.

“Nigeria’s budget, including the 2024 budget of the FGN, is a cesspit of waste and corruption. All budgets must be subject to forensic audit before presentation to the National Assembly.

“The practice of lawmakers of NASS adding budget items on their own after a presentation by the executive and before appropriation, in my view, is unconstitutional and should end,” he added.

Moghalu’s reaction comes amid increased hardship in Nigeria as inflation soared to 29.90 per cent in January 2024.

After days of appreciation, the Naira dropped to N1602.45 US dollar on Tuesday at the official forex market.