Moghalu Advises FG on Where to Get $30bn Loan to Solve Economic Challenges
- Prof. Kingsley Moghalu has called on the federal government to explore access to IMF's stabilisation fund
- This is as the ex-CBN deputy governor stated that the current economic challenges are not what can be wriggled out of overnight
- He also advocated for a mandatory audit of all budgets before their submission to the National Assembly
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Kingsley Moghalu, the ex-deputy governor (Financial Stability) of the Central Bank Nigeria (CBN), has advocated for the federal government to explore the possibility of obtaining a long-term stabilisation loan from the International Monetary Fund (IMF).
Source: UGC
Speaking on 'An Economy In Distress; Which Way Forward?' at the 16th edition of LEADERSHIP Annual Conference and Awards in Abuja, Moghalu emphasised that such a loan from the IMF could potentially drive sustained economic expansion.
Earlier this week, the former presidential candidate predicted that Nigeria's current economic downturn and its consequences will persist for at least three to five years.
Why FG should take loan from IMF
According to Daily Trust, Moghalu said the decision to approach the IMF would require weighing such a move's potential benefits and drawbacks.
Moghalu said:
“I am suggesting a careful consideration of a $20-30 billion stabilisation 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.”
Moreover, the former CBN governor stressed the importance of establishing a dedicated and expert economic advisory council composed of seven economists with specialised knowledge in key sectors, including agriculture, industry, labour, business, trade, fiscal policy, and development economics.
He posited that such a council would provide invaluable strategic insights necessary for driving economic transformation.
Corruption in ways and means borrowings
Continuing his remarks, Moghalu asserted that the federal government's N30 trillion ways and means borrowings represent a massive corruption scheme.
According to reports, the previous administration under ex-president Muhammadu Buhari borrowed N22.7 trillion through ways and means from the CBN, followed by an additional borrowing of N7 trillion by the current administration under President Bola Ahmed Tinubu.
Moghalu said:
“We should not be surprised that there is hunger and anger in the land because the past 10 years have been marked by many economic mismanagement, blotted ways and means of the CBN, blotted budget, which has paved the way for unprecedented corruption.”
He further remarked that the government's fiscal management has consistently faltered over time, burdening the CBN with excessive responsibilities.
IMF sends message to CBN
In related news, Legit.ng reported that the IMF asked the CBN to settle the overdue FX backlog to rebuild trust in the apex bank and the naira.
The organisation disclosed this in its recent executive board post-financing assessment with Nigeria report.
The IMF insisted that paying the CBN's dollar obligations would rebuild confidence in the bank and the Nigerian currency.
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Source: Legit.ng
