IMF Managing Director's first Africa visit: De Rato lauds Nigeria's reform efforts

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IMF Managing Director Rodrigo de Rato concluded his two-day visit to Nigeria on August 3, noting that he was very impressed by the Nigerian government's strong commitment to its far-reaching economic and social reform agenda- the National Economic Empowerment and Development Strategy (NEEDS)-but warned against the potentially destabilizing effects of rising inflation. This was the first stop on a three-country visit to Africa, which also includes Gabon and Uganda. In a message to IMF staff from Gabon on August 4, he said that he was closely following the events related to the reported al Qaeda security threat to the IMF headquarters and other financial institutions, while keeping his commitment to meet with African leaders "in support of our important work in this continent." He reassured IMF staff on steps taken to ensure their security, and stressed the importance of continuing the IMF's work on behalf of its members (see box, page 233).

In Nigeria, de Rato met with President Obasanjo and his economic team, other Page 233 senior government officials, and members of the National Assembly and state governors. He also met with representatives of the business community and labor unions, an HIV/AIDS clinic, and the Nobel laureate Professor Soyinka.

De Rato stressed that Africa ranked very high on his list of priorities and that he recognized Nigeria's critical role as a political and economic leader and as a potential role model for other African countries. Describing his time in Nigeria as a "valuable opportunity to gain a closer understanding of the Nigerian economy," he welcomed the government's implementation this year of a prudent set of macroeconomic policies aimed at achieving macroeconomic stability and further enhancing growth prospects. Sustained implementation of the NEEDS, together with the Nigerian states' parallel strategies (SEEDS), will improve Nigeria's position to better realize its considerable growth potential, he emphasized. However, he also cautioned the Nigerian authorities to take measures to use the excess of predicted oil revenue in a stabilizing way and to reduce inflation, so as not to risk undoing progress achieved so far under economic reforms.

Voicing the IMF's support for the overall thrust and direction of current policies, he particularly lauded the government's...