http://businessnews.com.ng/2015/01/30/reassess-monetary-fiscal-policies-imf-tells-nigeria/?utm_source=rss&utm_medium=rss&utm_campaign=reassess-monetary-fiscal-policies-imf-tells-nigeria&utm_source=twitterfeed&utm_medium=twitter

The Managing Director of the
International Monetary Fund,
Christine Lagarde, has advised
Nigeria to re-examine its fiscal and
monetary policies immediately after
elections to see if further action was
needed after the government took
steps to rein in spending and adjusted
interest rates in November.
She said this was necessary in view of
the fall in oil prices, which has hurt
the country’s revenue.
Bloomberg quoted Lagarde to have
stated this in an interview in the
Rwandan capital, Kigali on
Wednesday.
The country hasn’t asked for
financial assistance from the IMF,
which would be willing to extend
further technical support to the
country if requested, she said.
“Shortly after the elections the
authorities will have to reassess the
situation in view of the continued
decline of oil prices to see if more
needs to be done,” said Lagarde.
“They may have to take more
measures.”
Also, the IMF boss urged African
nations to cut fuel subsidies and oil
exporters curb spending as a slump in
crude prices takes its toll on
governments’ revenue.
An almost 60 percent drop in oil prices
since June has forced policy makers in
Nigeria, Africa’s biggest crude
producer, to devalue the currency,
raise interest rates to a record and
consider shaving the 2015 budget by 8
percent.
Nigeria recently reduced the price of
PMS by N10, to N87 per litre, from N97
per litre.
Subsidising countries “should think
about reducing and phasing out the oil
subsidies, taking advantage of the oil
price and using public finance more
wisely than in undifferentiated
energy subsidies,”
“For the exporting countries that
are clearly taking a hit on both
accounts of reduced trade revenues
and reduced public revenues, they
have to be very cautious with public
spending, and reduce what can be
reduced and use whatever is left over
as buffers.”
The IMF last week lowered its 2015
economic-growth outlook for sub-
Saharan Africa to 4.9 percent from a
previous estimate of 5.8 percent in
October, citing “shocks” to oil-
producing economies from falling
prices.
The growth forecast for Nigeria, the
continent’s largest economy, was
lowered to 4.8 percent from 7.3
percent.

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When we talk they will say buhari

am coming