Why Nigerians Are Getting Poorer – IMF

President Muhammadu Buhari and IMF Managing Director, Christine Lagarde in Abuja. (File)

The International Monetary Fund (IMF), has in a recent report, said Nigerians are getting poorer and called on the government to urgently implement “coherent and comprehensive” economic reforms to arrest the situation.

The international financial institution also called on the nation’s political leaders not to be distracted by preparations for the 2019 general elections and fluctuating oil prices.

Though the economic landscape still remained challenging, Reuters reports that the IMF agrees Nigeria’s outlook for growth has improved.

This agrees with the recent National Bureau of Statistics report which revealed that Nigeria’s economy recorded a 0.83 percent growth.

“Comprehensive and coherent economic policies remain urgent and must not be delayed by approaching elections and recovering oil prices,” IMF said in its annual Article IV review of Nigeria’s economy.

“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita.

“Further delays in policy action — including because of pre-election pressures — can only make the inevitable adjustment more difficult and costlier.”

“Moving towards a unified exchange rate should be pursued as soon as possible. (IMF) staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.”

IMF also called on the the Central Bank of Nigeria (CBN), to stop its intervention activities in the foreign exchange market which it has been doing to ease pressure on the naira.

Source: NaijaNews


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