Published On: Thu, Apr 6th, 2017

Addressing conflict key to reviving Nigeria economy

IMF

IMF

LAGOS, (CAJ News) – EFFORTS by Nigeria to address its economic slump must be complemented by strategies aimed at curbing rampant conflict, the International Monetary Fund (IMF) stated.
The Bretton Woods institution said the slump in oil prices and production and an inadequate policy response were increasing unemployment and undermining efforts to reduce poverty.
It noted the authorities took some steps in 2016 to reduce vulnerabilities, mainly by deregulating fuel prices, increasing the monetary policy rate, and allowing currency depreciation to reduce the exchange rate misalignment.
“However, further actions are urgently needed to tackle the low revenue effort, large infrastructure deficit, rising debt service, double-digit inflation, and a foreign exchange market marred by restrictions,” IMF stated on Wednesday.
“These actions need to be supported by continued efforts to counter militant activity in the Niger Delta and an insurgency-related humanitarian crisis in the North East.”
Nigeria is facing some economic challenges linked to the declining demand for oil globally.
It is facing militancy in the oil-rich Delta State while in the northeast, the Boko Haram has killed over 20 000 people and displaced 2 million.
CAJ News

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