INTERNATIONAL MONETARY FUND (ON whose side is it in NIGERIA)

ReI rememberd during General Babangida's learning experience, the IMF came up with their 'tunic' to Nigeria economic problems - the Structural Adjustment Program (SAP!) that Gen. Babangida  carried out to the letters. I remember him encouraging every Nigerian to thighten up his belt and brace up to the pure torture that he was to unleach on the population. However, it was found out later, the belt thightening torture was only meant for the impoverished Nigerians; the General was happily able to loosen his belt so wide and free that he had a complete free hand in the gulf crises oil windfall that experts belive was in excess of $12 billion!

Despite this the IMF didnt find anything wrong with the General. In fact the IMF kept its ever loud mouth sealed! It appers to me that perhaps remotely there may be a kind of secret deal with some Nigeria government officials and the so called wise men of IMF.

This may sound preposterous, but does it? Do ponder over this, the IMF is aware that Nigeria is running a double digit inflation figure of over 11% (that is officially, it may even be more); the IMF is also aware that the Nigeria economy is almost 100% dependant on imported items. Here is the 'serious' advise from the egg heads at IMF to Nigeria; Nigeria should devalue its Naira further! One would wonder whether this is to improve the inflation index from the crushing two digits to a single digit. Since Nigeria nfortunately is dependant on importation, it also mean that devaluation of the Naira would imply more Naira chasing the forein currencies and this authomatically means spiral inflation or even a hiper inflation. So if this IMF talk is not more fuel for inflation what else could it be? Thogh the Nigeria CBN governor has 'reasoned' correctly that the IMF is simply mistaken , let us hope that, there is no secret deal between the Nigeria government and the IMF and that the CBN governor seeks ways to strengthen the Naira further; but if there is a secret deal as I suspect dont be surprised that despite the CBN governor's 'reaction' Naira would soon divenose!