Finance Minister Kemi Adeosun addresses Nigeria's recession

Nigeria's Finance Minister, Kemi Adeosun, provided insights into the country's economic progress and plans during an interview with CNBC on the sidelines of the World Bank and IMF Annual Meetings in Washington. Adeosun addressed concerns on Nigeria's recession recovery, providing updates on funding discussions with the World Bank and the African Development Bank (AFDB). She clarified that Nigeria is not in an IMF program but has applied for a budget support facility to raise concessionary finance. Adeosun reassured that Nigeria is on track with its fiscal consolidation plan, transitioning the economy from consumption-driven to investment-driven. The Finance Minister highlighted the importance of infrastructure investments in driving economic growth, pointing to significant capital expenditure allocations to projects like roads, rail, airports, and agriculture. Adeosun expressed optimism for growth in 2017, citing progress in agriculture and stability in oil prices. While acknowledging the challenges faced due to oil price volatility, she emphasized the need for fiscal prudence and diversification away from oil dependency. Adeosun also discussed efforts to enhance oil production output through private sector financing arrangements, aiming to increase Nigeria's oil capacity. The Finance Minister addressed concerns regarding foreign exchange availability and exchange rate policies, mentioning the central bank's commitment to a flexible exchange rate system and ongoing adjustments to address currency shortages. Adeosun expressed confidence in attracting foreign direct investment (FDI) through macroeconomic policies supporting infrastructure development and ease of doing business initiatives. She remained positive about the outlook for investment in Africa, emphasizing the continent's potential for economic growth and resilience. Adeosun also commented on the potential impact of Federal Reserve rate hikes, highlighting the attractiveness of African investments and Nigeria's efforts to present a compelling investment narrative to global markets.