IMF borrowed money from Nigeria in 1974, former minister says, bemoans present state of country’s economy

Abubakar Alhaji who served as the minister of finance in the second republic has disclosed that the International Monetary Fund (IMF) borrowed money from Nigeria in 1974.

Abubakar who blamed country’s over-dependence on oil for the economic problems, said while in the position, he signed the agreement. made the disclosure on Thursday, September 21, when Senator Shehu Sani paid him a visit in his residence in Sokoto, Vanguard reports.

He made the disclosure Thursday, Sept. 21 when Senator Shehu Sani paid him a visit in his Sokoto residence according to Vanguard.

Though the former minister did not disclose the amount involved in the loan, he said he signed the loan agreement when he was permanent secretary at the federal ministry of finance.

“I weep for Nigeria for what it has become today.

The country has vast resources that if well harnessed, could lead the country to greater heights.

“In 1974 when I was permanent secretary at the Federal Ministry of Finance, the IMF approached us for a loan.

I signed the agreement on behalf of Nigeria. Unfortunately, today expenses of government have driven us into recession,’’ he said.

The former minister blamed Nigeria’s over dependence on oil for the economic problems in the country.

He said: “Aside from oil and agriculture, Nigeria had industries that were earning foreign exchange for it. Agriculture and the industries were allowed to recede and when global fuel prices crashed, we are nowhere today.” Meanwhile, as at June 30, 2017, Nigeria’s debt stocks stood at about $15.1 billion and N14.1 trillion respectively, the NBS said on Tuesday, September 19.

According to the report, after proper review, it was shown that the total foreign debt profile of the Federal and the 36 states governments and the Federal Capital Territory (FCT) shows a continuous rise since the coming of the Buhari administration.

Under the current government foreign debt profile has risen from $10.718 billion in 2015, to $11.406 billion in 2016 and $15.047 billion in 2017.

Out of the current total figure of $15.047 billion, the federal government accounts for $11.106 billion which is about 74%. While the 36 states of the federation and the FCT, Abuja owe about $3.94 billion.