Economy
IMF urges action to strengthen global growth, build inclusive economies
By Omoh Gabriel
International Monetary Fund IMF, has urged world leaders to take five action plan to strengthen global economic growth and build inclusive economies. The IMF made the call at the just concluded Group of 20 summit in Hamburg Germany. A statement issued by the multilateral financial body’s Managing Director Ms. Christine Lagarde said “I would like to warmly congratulate Chancellor Merkel and the German authorities on their steady leadership of the G20 this year and on hosting the Leaders Summit in the beautiful city of Hamburg.
“In my discussions with Leaders I noted the good news that the global economic recovery is on track, broad-based, and expected to continue into next year. At the same time, I warned about complacency and risks, including elevated financial vulnerabilities, low productivity, and rising inequality.
“The current period of growth should be used as an opportunity to further safeguard the financial sector–by building up capital buffers and strengthening corporate and bank balance sheets; to address the issue of stagnant real wages–which can undermine the recovery and fuel discontent; and to confront the problem of excessive current account imbalances–with both surplus and deficit countries playing their part.”
“In line with the Hamburg Action Plan, I emphasised five priorities which include stepping up of trade reform. “An essential part of this effort must be to reduce barriers, subsidies, and other measures that distort trade. We can strengthen the global trading system by reaffirming our commitment to well-enforced rules that promote competition while creating a level playing field; increase productive infrastructure investment. This would boost employment and growth in the short-term and productivity over the medium-term. The third step she outlined is, “Promoting financial inclusion to increased access to finance, especially for women which according to IMF is critical to support sustainable growth–and will create millions more jobs. Another step is invest in human capital this according to her will help to better equip populations to deal with the challenges of technological and structural economic shifts. This is especially important in the context of increased automation and the use of artificial intelligence.
She also urged leaders to accelerate labor market reforms. This should “include expanding people’s access to the labor market, improving flexibility, and reducing informality. A crucial dimension is to close the gender gap in terms of female labor force participation — which is good for increasing growth, reducing inequality, and diversifying economies.”
Continuing she said “I strongly welcome the G20’s focus on climate change, the sustainable development goals, and the challenges facing low-income countries. I commend, in particular, Germany’s leadership in launching the Compact with Africa, which is designed to boost private investment across the continent. The countries involved in the first wave of this effort are already receiving support from the IMF–to help strengthen their macroeconomic frameworks and institutions, including by increasing support for capacity development. “
“I am encouraged that the Hamburg Action Plan includes an emphasis on strengthening the global financial safety net, with a strong, quota-based, and adequately financed IMF at its centre. I am also pleased that the G20 Leaders highlighted the importance of the IMF continuing to provide capacity development in the area of anti-money laundering and countering the financing of terrorism.”
“I would like to express my deep appreciation to the German government for their generous hospitality throughout the G20 presidency. My particular thanks go also to the City of Hamburg and especially to the men and women who worked around the clock to ensure public safety and a successful outcome of the meetings, and I wish a speedy recovery to the people that suffered injuries during the protests in recent days.
“Finally, in my discussions with G20 Leaders, I said that just as the global crisis generated the momentum for effective multilateral action, so too we must use the global economic recovery to continue our collaboration to address risks and ensure strong, sustainable, balanced and inclusive growth. In this context, the IMF looks forward to working closely with the Argentinian Presidency of the G20 in 2018.”
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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