IMPACT OF IMF LOANS ON THE ECONOMIC DEVELOPMENT OF NIGERIA
IMPACT OF IMF LOANS ON THE ECONOMIC DEVELOPMENT OF NIGERIA
No Thumbnail Available
Date
2000-10
Authors
BELLO, ILIYASU ABDULRAUF
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This project is an appraisal of the Impact of International Monetary
Fund Loans on the Economic Development of Nigeria. Many
collapsed economies especially of the developing countries usually
run to IMF for revival. The result of this study has shown that
countries that do turn to IMF for revival are simply committing
economic suicide, as it is evident that they are worse off after the
implementation of IMF prescribed panacea.
The stringent conditional attached to IMF loans have left the
country in economic distress as the finding has shown that Nigeria
economy was better than what it was before 1986 when IMF loans
were obtained to finance the Structural Adjustment Program-me. The
key sectors of the economy such as education, industry, agriculture
and health have suffered serious set back during and after the
implementation of IMF financed Structural Adjustment Programmed.
Evident has shown that the structure of the Nigerian economy needs
no adjustment, which is why the adjustment programme brought no
improvement to the economy.
The interest and exchange rates have not been stable since the
introduction of IMF sponsored SAP. This has led to persistent increase
in the cost of living as a result of inflation, unemployment, capacity
Vii
under utilization, etc. The fund's areas of inadequacy were extensively
discussed. The fund's organization, policies and procedures have
revealed shortcomings in relation to the needs of the world economy
and the specific concerns of the developing countries. Such areas of
inadequacies include; lack of medium-term facility, the size of the
fund-quotes, the recent handling of conditionality, exchange rate
volatility, etc. Suggestion has been offered to overcome these
inadequacies.
The Nigerian debt crisis is one of the legacies of IMF loans.
Ways out of this crisis have been suggested. These include Nigeria
making effort to authenticate its external debt so as to avoid being
swindled by international financiers, putting in place a comprehensive
debt policy to provide the necessary framework for the country debt
management strategy. Debts whose sources and usage are
questionable should be ignored through concerted effort with other
third world countries and finally government should avoid raising loans
from the international Capital Market and other creditors such as IMF
which charge high interest rates with stringent conditionality and
whose money carry short maturity.
Description
Being a research project submitted to the Department of
Business Administration, Faculty of Administration, Ahmadu
Bello University, Zaria in partial fulfillment of the
requirements for the award of Master of Business
Administration (MBA) Degree
October 2000
Keywords
IMPACT,, IMF LOANS,, ECONOMIC,, DEVELOPMENT,, NIGERIA