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Nigeria is the strength of West Africa when it comes to striking a deal for the rest of the African countries. One such deal was AFRITAC 2, which aimed to assist specific African countries that meet certain requirements. But IMF deals always come with a long-term cost and strings attached. Since the countries cannot provide complete transparency, there is a hurdle for both parties in continuing with the deal.

This doesn’t necessarily mean the deal is broken at this point. However, the discussions regarding the improvement of the current situation are ongoing. The main countries in the deal are Nigeria, Liberia, and Sierra Leone, but these aren’t the only players in the scene. Other countries in the deal are Cape Verde, Gambia, And Ghana, who were also part of the recent discussions with IMF.

The main goal of these discussions was to improve technical assistance to the African region. The region previously received enough technical assistance funds to carry on infrastructure and other projects. However, now the IMF demands more transparency, and the deals are in danger. While Nigeria has committed to every clause of the agreements, there are issues other African nations need to address.

The IMF has stated in recent meetings that there can be issues with the technical assistance funds deal if usage transparency isn’t ensured. Moreover, Nigeria is already under a thread of facing high debt distress, the IMF has warned.

The CBN or Central Bank of Nigeria has launched a new digital currency. This central bank digital currency, or CBDC as it’s commonly known, has good and bad implications. It has been drawing a large amount of investors’ attraction. The e-naira currency is popular for its stability so far. The technical assistance plans mainly aim to carry out capacity-building measures in the recipient countries. Capacity-building measures boost a country’s overall potential. There is some specific potential to which a country can contribute to any given project or effort.

These measures boost this capacity and make the economy grow long-term. The technical assistance centers conduct research and make work plans to make these capacity-building goals more attainable. They also work towards the sustainable development goals of the United Nations.

The SDGs are a list of goals the UN has been looking forward to for years. Some SDGs are ending world poverty and hunger and ending the lack of water. Many countries have directly or indirectly been working towards these goals in collaboration with the UN.

The AFRITAC West 2 centers are also developed as part of this plan. The main areas of technical assistance are macroeconomic policies and financial management. The AFRITAC West’s goals depend on the SDGs and work towards achieving them. Now the future of these deals is really in the hands of how the west African nations plan things out. However, the talks surely laid a solid foundation for the 2023-2024 deals.

 

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