Published On: Thu, Oct 6th, 2016

IMF proposes reforms to revive Nigeria economy

IMF

IMF

LAGOS, (CAJ News) – THE International Monetary Fund (IMF) has recommended some reforms for Nigeria to overcome its ongoing economic problems.

Speaking from Washington in the United States, Vitor Gaspar, IMF Director of the Fiscal Affairs Department, said the priorities overall were the need for an internally consistent and comprehensive package of sustained reforms that were going to be important both for addressing the near term and the medium term.

He said on the fiscal side, the priorities were to safeguard fiscal sustainability, which means importantly increasing non oil revenues.

The official proposed implementing an independent price setting mechanism, to minimize fuel subsidies, while also improving public service delivery so that citizens see the benefits of good government services financed by the government.

Gaspar noted the situation was challenging right now for Nigeria, with the economy being in recession, and the fiscal situation deteriorating last year on the back of the slump in oil prices, while expenditure levels were kept steady.

He projected for 2016, there was a similar expectation with the slump in oil production and slow growth, creating challenges also with the debt profile.

The IMF executive said statistics were striking how the debt profile was weakening.

“Now interest payments account for more than 45 percent of federal government revenue. So, there are big challenges.”

CAJ News

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