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Managing Director of the International Monetary Fund (IMF), Christine Lagarde, will, today, begin a six-day visit to Nigeria and Cameroon to meet with policymakers and stakeholders in both countries.

Ms. Lagarde will meet with President Muhammadu Buhari and his economic team, along with business leaders and representatives of civil society. She is also expected to meet with the National Assembly in Abuja.

Lagarde's visit comes at a time Nigeria is in the process of fiscal adjustment as growth slowed to 3 percent in 2015 and low oil prices have led to significant shocks on government revenues. President Buhari presented the 2016 Appropriation Bill to the National Assembly on December 22. The N6.08 trillion ($30.71 billion) proposed budget for 2016 has a deficit of N2.22 trillion ($11.21 billion), which is equivalent to 2.16% of GDP and will take the country's overall debt profile to 14% of GDP.

The government plans to finance part of the deficit through domestic and foreign borrowings. About N900 billion ($4.55 billion) of the deficit would be sourced from foreign debt markets.

The IMF could play a key role in sourcing Nigeria's foreign debt to finance the deficit. In April last year, the IMF approved a $918 million loan to Ghana to support the country's reform programme aimed at increasing economic growth, job creation and social spending. The three-year financing package was approved under the IMF’s Extended Credit Facility.
 
“I look forward to productive meetings with President Buhari and his colleagues as they address important economic challenges, most importantly the impact of low oil prices,” Ms. Lagarde said ahead of her trip. “Nigeria is working hard to improve its business environment, promote opportunities for growth in the private sector, and strengthen social cohesion, all areas where the government has an important role to play.”

In Cameroon, the IMF Managing Director will meet President Paul Biya and his economic team, as well as private sector executives, women leaders, and members of civil society. In Cameroon, she will deliver a speech on January 8 to Finance Ministers from the six member countries of the Economic and Monetary Community of Central Africa (CEMAC).
 
“As the largest and most diversified economy in CEMAC, Cameroon is well placed to sustain, and reinforce, the momentum of integration,” Ms. Lagarde said. “The country and the entire CEMAC region are confronted with the twin shocks of the oil-price slump and a surge in disruptions related to security. Reinforcing regional integration and implementing ambitious reform agendas in CEMAC countries will be key to secure macroeconomic stability and restore strong and inclusive growth in the region.”