The International Monetary Fund (IMF) is set to give African Countries billions of dollars as loan.
Remember that the same IMF had warned Nigeria and other African countries a few months ago against collecting loans.
Most African countries including Nigeria have found a new business partner in China and have been collecting loans from the Asian country, an action industry players say might not have gone down well with the IMF.
Elanza News reports that the IMF has picked 11 African countries to be given $40 billion dollars as loan.
The IMF loan has sparked fresh concern by Africans who are now cautioning their leaders to be wary of such loans.
A Nigerian Senator who represented Kaduna Central Senatorial District from 2015 – 2019, Shehu Sani said the so-called IMF loan to be given to the 11 African countries is called Resilience and Sustainability Trust.
Experts say the IMF Greek gift could mean more debts for the African countries with interest piling up in years it can’t be paid.
“Let’s get this clear; the IMF is lending eleven African countries including Nigeria the sum of $40Billion, in the name of Resilience and Sustainability Trust,” Sen Shehu Sani said.
Some Africans, especially Nigerians in their reactions, opined that the Nigerian Government has been working hard to remove the contentious fuel subsidy as a result of an advice from the IMF who might have doled out the billion dollars in order to fulfill part of the agreement.
“The same IMF that warned us (Africans) against excessive borrowing from China,” Shehu Sani said of the proposed loan and it’s implications to the African economy.
During the administration of President Olusegun Obasanjo in Nigeria, billions of dollars were paid to the IMF which made the country free from debt.
The coming of President Muhammadu Buhari in 2015 to date, it has been a harvest of loans, raising the debt owed by Nigeria not only from IMF to more than triple.
Domestic debts owed by the 36 states and the FCT stands at N4. 46 trillion in 2021 with Lagos, Ogun, and Rivers States topping the chart.
As of December 2021, according to the Debt Management Office, Nigeria now owed the sum of N1. 12 trillion in domestic debts.
In 2020, the national debt of Nigeria amounted to around $131.2 billion US dollars.
But as at 18 March 2022, Nigeria’s total public debt (both foreign and local) rose by 20.2 percent to N39. 56 trillion ($95.77 billion) as at December 31, 2021, up from N32. 92 trillion ($86.392 billion) in 2020, according to the Director-General, Debt Management Office (DMO), Patience Oniha.
Reactions have continued to trail new moves for more loans from the IMF with Africans insisting the leaders must look inward rather than subjecting the generation yet to come with debt payment.
“The more you look the less you understand, the main aim is to weaken the African economy,” Ibrahim Danjuma said of the new proposed loan.
“I think this is what they are using to push for the removal of fuel subsidies….anyway, the new N4 Trillion is scary,” Azubike Nwokoye said of the new loan.
Some Nigerians said they can’t even figure out the usefulness of borrowing, adding that the government keep borrowing without any form of improvement or solution to their already failed economy.
They insisted that their leaders keep borrowing from the IMF and others and looting the money they borrowed.
“Someone opined that a future government could sue those terrible institutions for these unwarranted loans and still win.”
“Because it’s just so unreasonable considering the history of previous loans and its utility. Skulduggery at its best,” Chidinma said.
While some Africans are afraid that the loan from the IMF is to make their economy dependent on theirs, added that with the loan, the European economy will now continue to determine the African economic value.
They say that the economy of the European will continue to determine the growth of the African economy stating that if it goes down, that if Africa will go down.
Africans say if their countries are unable to pay up the IMF debt, they’ll use the debt as leverage to ask for ‘favours’ the countries cannot refuse.
They advised African leaders to repudiate the same as what Fidel Castro of Cuba suggested, adding that his belief was that European countries colonised and stole from Africans economy.