IMF Calls on Nigerian Finance Ministry and Central Bank to Champion Climate Policies in Economic Strategies

By News Editor Last updated Sep 26, 2023

The International Monetary Fund (IMF) has emphasized the pivotal role of Nigeria’s Ministry of Finance and Central Bank in combatting climate change by integrating climate policies into the nation’s economic frameworks. The IMF also highlighted the need for Central Banks to recognize climate-related risks, which could impact economic stability, and develop policies to address these challenges.

Key Points:

The IMF underscores the significance of Nigeria’s Ministry of Finance and Central Bank in incorporating climate policies into economic strategies, particularly in allocating resources for climate initiatives identified by the Ministry of Environment.
Vimal Thakoor, IMF’s Resident Advisor for Macroeconomics and Climate, emphasizes that climate change risks could potentially lead to inflation and financial sector instability, warranting proactive policies from the Central Bank.
Eva Jenkner, Director of AFRITAC West 2, emphasizes the importance of nations comprehending climate-related risks, tailoring policies for resilience, and aligning climate initiatives with fiscal and debt sustainability objectives.
The IMF is actively collaborating with member nations to address the macroeconomic aspects of climate change, endorsing policy reforms to enhance resilience, including the establishment of The Resilience and Sustainability Trust.

Analysis: The IMF’s call for the integration of climate policies into economic strategies highlights the imperative of addressing climate change at a financial and economic level. This underscores the interconnectedness of climate policies with fiscal and monetary measures.