By Adedapo Adesanya

The International Monetary Fund (IMF) has called on Nigeria and other African countries to deepen fiscal buffers, adopt context-specific monetary policies, and advance regional economic cooperation in order to cushion the effect of global headwinds and unlock long-term inclusive growth.

The Managing Director of the Bretton Wood institution, Ms Kristalina Georgieva, said this during the launch of IMF’s latest Global Policy Agenda Report titled Anchoring Stability and Promoting Balanced Growth at the ongoing World Bank/IMF Spring Meetings in Washington.

She highlighted the continent’s mixed growth outlook and called for a renewed commitment to structural reforms.

Speaking further on fiscal reforms, she said, “Don’t hide behind excuses, and say we can’t go for more tax because, you can. There is a lot that can be done to broaden the tax base, and a lot that can be done to reduce tax evasion and tax avoidance, using technology, as some countries are doing, to chase the tax dollars, when there is the foundation for that, is a very good thing to do.”

Ms Georgieva pointed out that while Africa remained home to some of the world’s fastest-growing economies, a significant number of low-income and fragile states were increasingly falling behind, especially in the wake of slowing global growth and rising geopolitical risks.

“We have seen over the last years, the African continent having some of the fastest growing economies, but we also have seen low-income countries primarily and among the fragile conflict-affected countries falling further behind, and now this, this is a shock for the continent,” she added.

The IMF chief stated that while the direct effect of trade tariffs on most African countries was minimal, the indirect consequences, particularly, from a slowdown in global growth posed more serious challenges, especially for oil-exporting countries, like Nigeria.

“The direct impact of tariffs on most of Africa, not on all of Africa, but on most of Africa, is relatively small, but the indirect impact is quite significant.

“Slowing global growth means that, all other things being equal, they would see a downgrade. And actually, we have downgraded the growth prospects for the continent, for the oil producers, like Nigeria, falling oil prices create additional pressure on their budgets. On the other hand, for the oil importers, this is a breath of fresh air.

“In other words, different countries face different challenges. If I were to come up with some basic recommendations that apply to Africa, I would say they apply to Nigeria, Egypt, Ghana, and they apply to Cote d’Ivoire.

“First, continue on the path of strengthening your buffer levels. There is still a lot that can be done on the fiscal side, to have strength and to have the buffers for a moment of shock, and don’t use any excuses around,” Ms Georgieva noted.

The IMF managing director urged Nigeria and other governments in Africa to do more to expand their tax base and tackle leakages through digital tools. She warned against copycat monetary policies, urging central banks to respond based on country-specific inflation pressures rather than mimic regional peers.

“On the monetary policy side, we are no more in a place where you can look at the book of the central bank governor of the neighbouring country and say, ‘Oh, they’re doing this, let’s try out the same,’ because you have to really assess domestically, what your inflationary pressures are and do the right thing for your country,” she said.

Ms Georgieva also made a passionate call for Africa to rebrand its global image, stating that corruption and conflict in one country cast a long shadow over the entire region.

“But above all, make it so that the image of the whole continent changes, because now everybody suffers from wrongdoing, from corruption or conflict in one country, it throws a shadow on the rest of the continent. And finally, like Asia, there is a need to deepen inter-regional trade and cooperation, remove the obstacles.”

She also underscored the importance of boosting intra-African trade, comparing the continent’s potential to that of Asia and welcomed World Bank efforts to ease infrastructure barriers to trade.

She added: “Sometimes they are infrastructure obstacles. The World Bank is working on reducing the infrastructure obstacles to broaden trade. Africa has so much to offer the world. They have the minerals, better resources, and a young population. I think that a more unified, more collaborative continent can go a long, long way to be an economic powerhouse.”

By Adedapo Adesanya

Proprietary Investment firm, VFD Group Plc, recorded a 1,202 per cent rise in its Profit Before Tax (PBT) in the 2024 financial year, closing December 31, 2024, at N11.2 billion.

This marked a turnaround after VFD Group reported a pre-tax loss of N1 billion in 2023 due to macroeconomic headwinds which affected a lot of businesses locally and globally.

Net investment income surged by 95 per cent to N59.0 billion despite a spike in investment expenses to N15.5 billion from N7.4 billion in 2023.

Other metrics showed that net revenue increased by 90 per cent to N71.0 billion, while operating profit grew by an impressive 104 per cent to N48.8 billion.

The firm, listed on the main board of the Nigerian Exchange (NGX) Limited, noted that the development showcased exceptional growth.

“The journey to this milestone was paved with strategic initiatives and a relentless pursuit of innovation,” it added in a statement on Friday.

The company holds investments in over 20 portfolio businesses spanning key sectors such as financial services, banking, market infrastructure, capital markets, technology, real estate, and hospitality.

As of April 22, 2025, VFD Group’s market capitalisation surged by 116 per cent to hit N121.6 billion from N56.2 billion year to date.

“These outstanding results reflect the success of our team’s efforts. As VFD Group looks to the future, it remains committed to delivering exceptional value to its customers and stakeholders,” the statement added.

By Modupe Gbadeyanka

About $90 billion is expected to be generated in economic value by 2035 from new strategies developed by the Nigerian government for agribusiness expansion and livestock transformation.

To achieve this, the National Economic Council (NEC) chaired by the Vice President, Mr Kashim Shettima, has approved the establishment of a Cotton, Textile and Garment Development Board.

At the NEC meeting on Thursday in Abuja, steps to reposition Nigeria’s economy and tackle insecurity at its roots were discussed by the participants, which included the governors of the 36 states of the federation.

The new regulatory body for the cotton, textile and garment sector of Nigeria will have governors representing the six geo-political zones, with Ministers of Agriculture and Food Security, Budget and Economic Planning, and Industry, Trade and Investment as members.

It would be domiciled in the presidency, with representation of the relevant public sector stakeholders, and funded from the Textile Import Levy being collected by the Nigeria Customs Service (NCS), though it would be private sector-driven.

“Nigeria is a nation where cotton can thrive in 34 states. Yet our production level remains a fraction of our potential.

“We currently produce only 13,000 metric tons, while we continue to import textiles worth hundreds of millions of dollars. This is not just an economic imbalance. It is an invitation to act,” he added.

“Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” the VP stated.

Also at the meeting yesterday, the council approved the establishment of the Green Imperative Project (GIP), with a national office in Abuja and regional offices across the six geopolitical zones.