During a recent workshop in Abuja, the International Monetary Fund (IMF) emphasized the vital role that Nigeria’s Federal Ministry of Finance and the Central Bank of Nigeria (CBN) should play in addressing climate change within the country’s economic strategies.
Vimal Thakoor, the IMF’s Resident Advisor for Macroeconomics and Climate, stressed the importance of integrating climate policies into economic frameworks. He highlighted that once the Ministry of Environment identifies a climate policy, it is essential to allocate the necessary resources through the budget to ensure effective implementation and resilience-building.
Thakoor also pointed out the potential risks climate change poses to economic stability, including inflation and financial sector instability. He urged the Central Bank to recognize these risks and develop policies to mitigate adverse consequences, thus safeguarding economic stability and long-term price stability.
Eva Jenkner, Director of AFRITAC West 2, underscored the need for nations to incorporate climate change considerations into their economic strategies. This involves understanding climate-related risks, tailoring policies to enhance resilience, and aligning climate initiatives with fiscal and debt sustainability goals. She emphasized that neglecting climate action could lead to significant long-term expenses.
Furthermore, Jenkner mentioned the IMF’s expanded engagement with member nations in addressing the macroeconomic aspects of climate change. This includes endorsing policy reforms to enhance resilience, with the establishment of The Resilience and Sustainability Trust serving as a mechanism to support these efforts.