The IMF held discussions with the government and central bank before publishing a report in which it argues that the naira is overvalued by 18% and needs to be devalued. The Nigerian authorities disagreed, telling the IMF that a lower naira would stoke inflation. Nigerian inflation at 15.75% in December was at its highest rate in 3 years, driven by higher food prices.
According to experts, Nigeria has a culture of resisting and cannot bend over to do what the IMF tells. For the record, devaluations took place in 2020, yet the Nigerian authorities labelled these as ‘currency adjustments’.
Source : The Africa Report