Moghalu Advocates For $30bn IMF Stabilization Loan Amid Forex Crisis

Moghalu Advocates For $30bn IMF Stabilization Loan Amid Forex Crisis

Former Deputy Governor (Financial Stability) of the Central Bank Nigeria (CBN), Kingsley Moghalu, has called on the Nigerian federal government to seriously consider acquiring a $20-30 billion stabilization loan from the International Monetary Fund (IMF) to address the ongoing foreign exchange crisis gripping the nation…..READ ALSO Beyond Exchange Rate: Moghalu Sounds Alarm On Nigeria’s Economic Crisis

Speaking at the 16th edition of the LEADERSHIP Annual Conference and Awards in Abuja, Moghalu emphasized that resolving Nigeria’s current economic challenges would require a long-term strategy spanning 3-5 years.

He urged the government to carefully assess the potential benefits and drawbacks of such a move, highlighting the imperative of weighing all options to navigate the crisis effectively.

Moghalu underscored the urgent need for fiscal prudence and accountability, pointing out flaws in Nigeria’s national budget, including the 2024 budget of N28.7 trillion, which he described as riddled with waste and corruption. He called for a thorough forensic audit of all budgets before presentation to the National Assembly to curb financial mismanagement.

The economic expert’s remarks come against the backdrop of soaring inflation, which reached 29.90 per cent in January 2024, exacerbating the financial strain on Nigerians. Additionally, the Naira experienced a depreciation, dropping to N1602.45 against the US dollar on Tuesday in the official forex market after a period of appreciation.