Published On: Wed, Apr 20th, 2016

IMF proposes policy reboot to save Nigeria economy

ng mapLAGOS, (CAJ News) – INTERNATIONAL Monetary Fund (IMF) Director of Africa, Antoinette Sayeh, has recommended a “policy reset” to revive Nigeria’s economy.

She was speaking at a briefing in Washington, United States where she offered solutions to resuscitate the biggest economy in Africa.

“I think I made it clear in my (earlier) response that, indeed, we were certainly pleased with some measures taken by Nigeria,” she said.

“And I refer to the focus on governance, which has been a big problem from  Nigeria in the past – and including in the oil sector and the need to improve governance there.”

However, she raised some concern.

“So, I mentioned some things that we’re very pleased to see get initiated  in Nigeria. But I also mentioned a number of issues that needed to be  addressed. And in that sense, certainly, a policy reset would be our recommendation to Nigerians,” said Sayeh.

She said these had been laid out in the Article IV report that went into  depth about measures and the package on the fiscal side that the Nigerians  need to consider in addition to its monetary policy issues.

These include flexibility on the exchange rates and a coherent macroeconomic policy package to address a huge shock.

Nigeria’s struggles are attributed to an over-reliance of oil.

Sayeh said oil exporters, such as Nigeria continued to face difficult  economic conditions.

She was downbeat about the future.

“We forecast growth to slow further for the group of the region’s oil exporters in 2016, to 2,5 percent from as much as 6 percent in 2014,” said  Sayeh.

CAJ News

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