1. REPOSITIONING THE NIGERIAN ECONOMY WITHOUT THE IMF
INTRODUCTION
In recent times, there has been growing concern about the the continued survival of
Nigeria as a nation. The problem of economic underdevelopment has remained fundamental in
the history of Nigeria since independence in 1960. It is a common knowledge that the marriage
between Nigeria and her colonial masters was finally broken in 1963 when she became a
republic. Alas, it is worth stating that even after the republican attainment, the Nigerian economy
is rather still subservient and answerable to some so-called international forces like the
International Monetary Fund(IMF), World bank, Paris club and what have you. Booed by the
desire to attain rapid development within a very short time, Nigerian policy makers have a clear
consensus about the importance of growth in the development process hence, settled the divorce
with the scion from the dynasty of her so-called colonial masters. Now in Nigeria the wave is
blowing over our economy, about 70% of the population are living below the poverty line, rate
of unemployment is on the rise, inflation is sky-rocketing, per capita income is dwindling,
exchange rate is unstable, there is deficit in the balance of payments e.t.c. and our economy
strongly needs a safety net. What has the IMF done in remedying this problems?, what has she
actually done in obliterating these troubles? What are the problems with the Nigerian economy?
How can Nigeria achieve growth without the IMF?
IMF and the Nigeria debt conundrum
Nigeria became a member of IMF inorder to derive the benefit of the fund’s objectives in
the areas of productive resource development, enhancement of income and employment,
enhancement of its terms of trade and balance of payment and securing IMF resources and
support in case of balance of payments maladjustment.
The IMF on the other hand, is an international monetary institution established under an
agreement among 44 pioneering nations called the Bretton Woods agreement of 1944. The
following are its objectives;
 To promote international monetary cooperation through a permanent institution which
provides the machinery for consultation and collaborations in international monetary
problem.
 To facilitate expansion and balanced growth of international trade and income and the
development of productive resources of member countries.
 To promote exchange rate stability among member nations.
 To lend confidence to members by making resources available under adequate safeguard,
thus providing opportunity for correcting maladjustment.
In its strictest sense, evaluating and assessing the foregoing rosy objectives of the IMF
shows that Nigeria is far from achieving anything meaningful from this organisation. If at all we
think we have benefited, our per capita income would not have been very low, capacity
utilisation would not be less than 40%, unemployment would not be on the rise, and there would
not be widespread poverty all over the land. As revealed by Adamu Ciroma(2000), “we
borrowed US$12billion from the Paris club, we have paid back US$17billion and we are still
owing about US$21.5billion”. Looking at this damning statistics, it is obviously a fact that
Nigeria has not fared better off from her interaction with the IMF. The test of effectiveness of a
loan from any aid agency should be the movement from dependency to self-sufficiency.

2. However, it appears that most countries that have interacted and absorbed the IMF prescriptions
often ended up expunging the word ‘self-sufficiency’ from their economic vocabulary hence,
Nigeria is not an exception. Bryan Johnson and Bret Schaeter of the heritage foundation rightly
asserted, “ more than half of the IMF’s borrowers between 1965 and 1995 were no better off than
when they started. A third were actually poorer. Almost all were deeper in debt”. In spite of this
heart-rending indices, our policy makers are still bent on pursuing economic policies that have
been retrogressive rather than progressive and development-oriented.
Challenges Facing the Nigerian Economy
For almost a decade now, we have got rosy macroeconomic indicators that have
beautified the economic landscape of the country. Among these are the impressive non-oil
growth, second wealthiest country on the continent after South Africa, stable exchange rate,
single digit inflation rate, inflow of foreign direct investment and so on. Why this array of
macroeconomic indicators has not significantly transformed the country are highlighted below;
 The issue of corruption is a major challenge in Nigeria. Globally, we have gained fame
through corruption. This is the reason Babafemi Ojodu(1992) postulated that “corruption
has become the major export for Nigeria apart from oil”. One wonders why the common
refrain whenever people loot the tills has been “ is it not our money?” suffice it to say that
corruption is a cankerworm that has eaten deep into the fabric of the system.
OTHER CHALLENGES INCLUDE;
 Overdependence on crude oil as a major source of revenue.
 Inadequate mechanism for economic diversifcation
 The problem of favouritism and nepotism
 Relatively low level of foreign direct investment(FDI)
 Poor performance of the agricultural and the manufacturing sectors
On a final note, the problems with our economy are issues we cannot exhaust in this
paper but the remedies proffered in the subsequent section will help in no small way to alleviate
these problems.
The Way Forward Without the IMF
I often ask myself “ does the solution to our problem lies in IMF?” The answer I get
most times is an emphatic ‘NO’. I further draw inspiration from the words Schumacher(1973)
who said “ development does not start with goods, it starts with people, their education and
planning. Without these three things all resources remained latent potentials”. This goes to say
that development of any form is built on the bedrock of heavy investment in human resource
development, education and capacity building. The following are other factors that can enhance
economic growth and development in our economy.
Fighting corruption:
In the fight against corruption in our country, the FG must ensure that all avenues for leakages
in our economy are blocked. Moreso, any corrupt official found wanting in the discharge of

3. his/her duties must be made to face the wrath of the law. This will go along way in ensuring
probity and transparency in our country.
Private sector participation:
The effort of the current administration in the move to privatizing the power sector is an effort in
the right direction. Government should carry out an urgent review of its privatization
programme with the aim of assessing its impact and benefits to the people and the economy.
Economic diversification:
Nigeria is blessed with vast natural resources and oil has been recognised as the mainstay of the
Nigerian economy. Crude oil contributes about 70% to the country’s GDP. Yet, the economy is
caught in the web of financial intrigues. Diversifying the revenues earned from crude oil export
to the manufacturing and agricultural sectors would help to spur rapid growth and development.
Rationalization and harmonization of government activiies:
In the recent past, gross inefficiencies have been discovered in government agencies and
parastatals. As a remedy to duplicaion and inefficiency, effort should be made to rationalise and
harmonise the activities of government agencies, institutions, ministries and extra-ministerial
department.
Encouraging entrepreneurial skill and talent:
The Nigerian government should encourage entrepreneurial skills through the already established
SME, Equity Investment scheme(EIS), and the Small and Medium Enterprises Development
Agency(SMEDA). The government should ensure that there is proper monitoring and evaluation
inorder to ensure efficiency. This could help in increasing R & D hence, increase in
productivity.
Fighting the problem of insecurity:
In a country where there is optimum security, there will be influx of FDI into such an economy.
The Nigerian government should help tackle security situations in the country. The lingering
Bokoharam crises for instance, is a threat to the country’s rate of economic growth and
development. Such threat should be tackled to create a conducive atmosphere for investment.
CONCLUSION
Countries such as China and India have been able to realised economic development
through the self-reliance option. These countries are not half as blessed as us. We have got both
the natural and human resources needed for rapid development. What is then holding us back? I
think now is the time for the take-off to the height of industrial power. With determination,
tenacity and focus, we will be there even without the IMF.
AMEH MUSTAPHA
KW/13A/2521