Vice President of IMANI Africa, Bright Simons, has criticised government’s planned early exit from the IMF programme, calling it a “classic case of good optics, bad economics.”
Speaking on Joy News’ PM Express Business Edition on Thursday, April 24, he accused both the government and the IMF of elevating appearances over substance.
“If the IMF will do a victory lap dance, the government will join them,” he said.
“And then we’ll conclude by 2028 that we will not have met those targets.”
Bright Simons believes the looming exit does not mean real fiscal consolidation.
“By that time, we’re not in the program. So the question then becomes: did we need the program to meet the targets? Because the targets will still be relevant, even if we are no longer under the IMF’s watch.”
He argued that the exit strips the program of its true purpose.
“If the IMF really wanted us to get to those targets—debt-to-GDP of 55%, and 70% for present value—they should have encouraged the government when it requested an extension.”
Instead, the IMANI Veep said the IMF prioritised public signalling over practical implementation.
“The signalling is not pretty. They’ve elevated the signalling above the facts.”
He warned that the government will likely take advantage of this loosened scrutiny.
“They will end the program and have more flexibility. But if they don’t stick with the program just because they think they can regain market access, then those IMF targets? They’re gone.”
He cited Kenya as an example.
“Kenya terminated their program early and went to raise $1.5 billion from the Gulf. Nigeria never signed up at all. And now Ghana seems to be following that mindset.”
But, in Simons’ view, this is short-sighted.
“The IMF program doesn’t bring a lot of money. True. But it brings discipline. If you think market access is a better route, just remember—it’s also more expensive.”
Critiquing the move, Bright Simons described the exit as largely symbolic.
“It’s an irrelevant discussion now. The program is ending not because we’ve achieved our goals but because we want to claim victory. The IMF should not reward that.”
As the IMF prepares to possibly sign off with fanfare, Bright Simons insists the hard work is far from over.
“Ending the program doesn’t mean ending the problems. You can clap all you want, but if the fundamentals are weak, markets will remind you soon enough.”
Source: Myjoyonline.com
