To many Nigerians who view the International Monetary Fund, IMF, with suspicion, the visit of Christine Lagarde, its managing director, has further fuelled anxiety over the debate on whether or not Nigeria should devalue the naira. Lagarde has in the past advised the federal government to devalue the Naira in the face of declining oil price to save the economy from collapse, but President Muhammadu Buhari has refused the need the advice.

Lagarde’s four-day visit to the country is part of a two-nation West African region tour to engage policy makers and top officials of Nigeria and Cameroon on economic developments affecting both countries and the West African sub-region.

The IMF explained that the visit would underline the Fund’s strong relationship with its African member countries. “The visit to Nigeria will provide an opportunity to strengthen the Fund’s partnership with the largest economy in sub-Saharan Africa,” the statement said.

While in Abuja, Lagarde would meet with President Buhari, Kemi Adeosun, minister of finance, and Godwin Emefiele, governor of the Central Bank of Nigeria, CBN as well as members of the National Assembly, top business leaders, and civil society representatives.

“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,” said Lagarde. She said discussions with President Buhari would focus on various economic issues, particularly the impact of the declining crude oil prices on the country’s economy.

The IMF has been critical of some policies of the Buhari administration, particularly the CBN’s monetary policy on restriction of access to foreign exchange to strengthen the Naira and stabilize the Nigerian economy. The CBN placed a ban on importers of 41 items from accessing its foreign exchange window on grounds that they could easily be produced in Nigeria rather than spend the country’s reserves on importing them. But Antoinette Sayer, the Fund’s director, African Department, said the measure was detrimental to the country’s economy, as it was exerting undue pressure on the national currency, rather than stabilize it.

Sayer said the introduction of the administrative measures to limit access by some items to foreign exchange and ban certain imports as a way of restricting the demand for foreign exchange was hindering private sector investment in the economy. “It is not something we think is sustainable or advisable,” he said. “We hope that there will be an opportunity to review those restrictions and permit the exchange rate to continue to adjust,” he added.