IMF wrong on Nigeria’s economic projections – Budget Office

The Director-General of the Budget Office of the Federation, Ben Akabueze, has criticized the International Monetary Fund (IMF) for consistently underestimating the Nigerian economy over the past four years.

Speaking on Channels Television’s Politics Today program, Akabueze highlighted that Nigeria’s actual economic growth has consistently exceeded IMF’s projections.

The remarks came as Akabueze discussed the economic projections outlined by the government of President Bola Tinubu for 2024.

President Tinubu presented a budget estimate of N27.5 trillion on November 29, 2023, forecasting a 3.76% economic growth and a moderation of inflation to 21.4% in 2024.

This outlook diverged from the IMF’s October prediction, which anticipated a 3.1% growth rate for Nigeria in 2024.

Akabueze emphasized that IMF’s projections should not be considered the ultimate measure of economic growth, asserting that those directly responsible for managing individual economies, like the Nigerian government, are better positioned to make accurate predictions.

Regarding the ambitious targets set by the Tinubu government, Akabueze stated that the projected growth rate in the 2024 budget does not fully reflect the government’s aspirations, as it aims to double the GDP before the end of the first term.

Despite criticisms of the 2024 budget estimates, Akabueze defended the appropriation bill, stating that it addresses the needs of the poor in areas such as healthcare, security, education, and the overall economy.

He acknowledged that the budget might be perceived as “way too small” for Nigeria’s requirements but emphasized the government’s need to align its expenditures with available resources.

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