…As Benue Govt confirms sacking of 5,000 residents by herdsmen***

Nigeria’s people are getting poorer despite the country’s slow recovery from recession and economic reforms are urgently needed, the International Monetary Fund has said.

The Fund expects the government to “muddle through” in the medium term, and any progress could also be threatened if elections next year consume political energy and resources, it said in a report seen by Reuters on Wednesday.

Since emerging from recession in the second quarter of 2017, Nigerian officials have repeatedly boasted that they have set the economy back on track.

But critics say much of the recovery comes from a return to oil dependence after a rise in global oil prices and a rebound in crude production, more the result of militants in the Niger Delta halting attacks on oil facilities than of economic policy under President Muhammadu Buhari’s administration.

The IMF said in the report that the outlook for growth had improved but remained challenging.

“Comprehensive and coherent” economic policies “remain urgent and must not be delayed by approaching elections and recovering oil prices,” it stated in its annual Article IV review of Nigeria’s economy.

“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita,” the IMF added.

In the report, it identified risks to growth, including additional delays to implementing policies and reforms ahead of the 2019 elections, security tensions, and oil prices, a fall in which could see capital flows reversed.

“Further delays in policy action, including because of pre-election pressures, can only make the inevitable adjustment more difficult and costlier,” the report added.

The lender repeated its call for Nigeria to simplify its complex foreign exchange system, a bugbear for the IMF for more than a year, which has left large gaps between official rates and various windows that certain groups can use to get other rates.

“Moving towards a unified exchange rate should be pursued as soon as possible. The IMF staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices,” it stated.

The Fund further singled out the central bank, saying it should discontinue direct interventions in the economy.

The Central Bank of Nigeria frequently injects hundreds of millions of dollars into the foreign exchange market to keep its own rates stable.

Commercial banks struggling to remain solvent were also called out, but not identified by the IMF, including one that the lender said was already insolvent, adding, “Some of these banks are kept afloat through continuous recourse to the CBN’s lending facilities.”

The IMF said it would not comment on purported leaks. A spokeswoman for the Fund said a statement would be issued after the lender’s board’s meeting to discuss its assessment on Friday.

A spokeswoman for the Federal Ministry of Finance did not immediately respond to a phone call and email requesting comment.

Meanwhile, the Benue State government, Wednesday confirmed that armed herdsmen had sacked close to 5,000 residents of Mbatoho Island, at Mbalagh council ward of Makurdi local government and occupied the vast land.

The herdsmen were also reported to have razed the homes of the locals after sacking them and caused the cows to graze on farmlands and food barns of the fleeing locals.
Benue state Information Commission, Lawrence Onoja Jnr. who made this known to reporters in Makurdi, said the invaders had completely taken over the Island adding that the government had directed security personnel to push back the invaders.

According to the Commission, “our findings when the Security Adviser to the Governor, Lt. Col. Paul Hemba(Rtd.) led a team to Island, indicated that for sometime in the last few days there has been serious influx of herdsmen into Benue especially along Agatu, Guma, Logo, Katsina/Ala local government areas and communities bordering Nasarawa state especially.

“It was in course of this influx that groups of herdsmen three days ago went to Mbatoho Island, at Mbalagh council ward of Makurdi local government area and sacked the locals from their homes.

“The people fled from Island and the herdsmen took over the community. When the team got there it was discovered that the herdsmen were feeding their cattle on the farm produce of the people and all they had in their barns.

“Governor Samuel Ortom has been in constant touch with security personnel who have mobilized to the Island and have been directed to to push back the herdsmen.

“Unfortunately the Exercise Ayem A’ Akpatuma recently launched by the military in the state to end the herdsmen incursion in the state does not cover that area because it is an Island completely surrounded by water.

“However, security personal have been mobilized to the island to move the herdsmen out so that the people can move back to their community.”

When contacted, the State Police Public Relations Officer, Assistant Superintendent, ASP, Moses Yamu confirmed the development.

Punch with additional report from Citizen