‘Provide Alternative Financing To China Loans’ – Elumelu Tells IMF

‘Provide Alternative Financing To China Loans’ – Elumelu Tells IMF

By Wires Editor | The Trent on April 12, 2019
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Tony Elumelu UBA
Tony O. Elumelu at President Obama's US-Africa Leaders Summit 2014. Grand Hyatt Hotel, Washington DC. African | Margarita Corporan

Tony Elumelu, the chairman of Heir Holdings, on Friday, April 12, 2019, asked the International Monetary Fund, IMF, to provide other alternatives followings its warning to Nigeria to avoid China loans.

Tobias Adrian, the financial counsellor and director of the IMF’s Monetary and Capital Markets Department, during the launch of the Global Financial Stability Report for April on Wednesday,April  10, 2019, at the IMF/World Bank meetings in Washington D.C, United of America warned countries to make sure that when they borrow from abroad the terms are favorable.

“In particular, we recommend that loans to countries should conform with Paris Club arrangements and that is not always the case of loans from China,” the IMF chief said.

But Elumelu disagreed with IMF advice, saying nature abhors vacuum and so the IMF, World Bank and other development partners to provide alternatives that will create jobs.

Elumelu, who was on a private visit to the State House, said: “My position is that nature abhors vacuum.

“If you do not want Nigeria to take China loan, provide the alternative. Like I keep saying they should also support the development of entrepreneurs, they should look at ways to help us eradicate poverty in a manner that is sustainable.

“For me, one of the surest ways to eradicate poverty is to ensure that our youths are gainfully employed through entrepreneurship.

“Also to make sure that development agencies – IMF, World Bank and co help and support Nigeria to improve on her infrastructure, road transportation, access to electricity.

“These are things that will help us improve on security in Nigeria. These are things that will help us increase prosperity through employment which is the most important thing. So, the advice is good but nature abhors vacuum.”

Advising on the Next Level, Elumelu said it was time to work.

“On the economy and the next level, let us just continue in what we are doing, improve on them, increase capacity.

“I operate in the power sector, we are the biggest generator of electricity in Nigeria through Transcorp power and I know first hand what efforts government is doing.

“But we need to do more, we need to convert gas to power, we need to compliment what is going on already in agric space and as you know there is peace and prosperity in that sector but we need to add a little zeal to it to be able to attract investors.

“I think the elections are over and we need to move forward as a team, as a country so that our people will be better for it.”

Read more at Vanguard

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