Published On: Thu, Mar 30th, 2017

IMF proposes measures to revive Nigeria economy

IMF

IMF

LAGOS, (CAJ News) – THE International Monetry Fund (IMF) has urged Nigeria to adopt stronger macroeconomic policies to rebuild investor confidence and foster economic recovery.
After concluding consultation with Nigeria, a delegation of IMF directors nonetheless commended the efforts already made by the authorities to reduce vulnerabilities and enhance resilience.
These include increasing fuel prices, raising the monetary policy rate and allowing the exchange rate to depreciate.
“However, in light of the persisting internal and external challenges, they emphasized that stronger policies were required,” the delegation stated.
Directors welcomed the authorities’ Economic Recovery and Growth Plan, which focuses on economic diversification driven by the private sector, and government initiatives to strengthen infrastructure—including the recently adopted power sector recovery plan.
“However, they underlined that without stronger policies these objectives may not be achieved,” stated an IMF spokesperson.
IMF directors emphasized the need for a “front-loaded, revenue-based
fiscal” consolidation starting in 2017, to reduce the federal government interest payments-to-revenue ratio to sustainable levels.
They stressed the need to contain the fiscal deficit of state and local governments, including through improved transparency and monitoring.
With oil receipts dominating fiscal revenue and exports, the Nigerian economy has been hit by low oil prices and falling oil production.
The country entered into a recession in 2016, with growth contracting by 1,5 percent.
Annual inflation levels doubled to 18,6 percent.
CAJ News

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