The International Monetary Fund (IMF) has expressed a renewed confidence in the Nigerian economy.

Its Executive Directors also hailed the economy’s recovery signs, such as reduced inflation and strengthened reserve buffers.

According to its Media Chief for Africa, Lucie Mboto Fouda, in a statement yesterday, IMF noted that Nigeria’s real Gross Domestic Product (GDP) increased by 1.9 per cent in 2018, up from 0.8 per cent in 2017.

”This is on the back of improvements in manufacturing and services, supported by spillovers from higher oil prices, ongoing convergence in exchange rates and strides to improve the business environment,” the IMF said.



It said the headline inflation fell to 11.4 per cent at end of 2018, reflecting declining food price inflation and weak consumer demand.

The Fund also reflects a relatively stable exchange rate and tight monetary policy during most of 2018, but remains outside of the central bank’s target range of 6-9 per cent.

IMF also noted that record holdings of mostly short-term local debt and equity and a current account surplus lifted gross international reserves to a peak in April 2018.

The Fund pointed out that persisting structural and policy challenges continue to constrain growth to levels below those needed to reduce vulnerabilities, lessen poverty and improve weak human development outcomes, such as in health and education.

It said: “A large infrastructure gap, low revenue mobilisation, governance and institutional weaknesses, continued foreign exchange restrictions, and banking sector vulnerabilities are dampening long-term foreign and domestic investment and keeping the economy reliant on volatile oil prices and production.

“Under the current policies, the outlook remains therefore muted. Over the medium term, absent strong reforms, growth would hover around 2½ per cent, implying no per capita growth as the economy faces limited increases in oil production and insufficient adjustment four years after the oil price shock.

“Monetary policy focussed on exchange rate stability would help contain inflation, but worsen competitiveness if greater flexibility is not accommodated when needed.

“High financing costs, on the back of little fiscal adjustment, would continue to constrain private sector credit, and the interest-to-revenue ratio would remain high.



“Risks are moderately tilted downwards. On the upside, oil prices could rise, prompted by global political disruptions or supply bottlenecks.

“Bold reform efforts, following the election cycle, could boost confidence and investments, especially given relatively conservative baseline projections.”

Also, in the statement, the Executive Directors of the Fund welcomed Nigeria’s ongoing economic recovery, accompanied by reduced inflation and strengthened reserve buffers.

They, however, noted that the medium-term outlook remains muted, with risks tilted to the downside.

“In addition, long standing structural and policy challenges need to be tackled more decisively to reduce vulnerabilities, raise per capita growth, and bring down poverty,’’ the directors said.

They urged the Federal Government to redouble its reform efforts and supported the country’s intention to accelerate implementation of the Economic Recovery and Growth Plan.

The executive directors stressed the need for revenue-based consolidation to lower the ratio of interest payments to revenue and make room for priority expenditure.

They welcomed the authorities’ tax reform plan to increase non-oil revenue, including through tax policy and administration measures.

In statement, they stressed the importance of strengthening domestic revenue mobilisation, including through additional excises, a comprehensive VAT reform, and elimination of tax incentives.

They said that securing oil revenues through reforms of state owned enterprises and measures to improve the governance of the oil sector would also be crucial.

The directors highlighted the importance of shifting the expenditure mix toward priority areas.

In this context, they welcomed the significant increase in public investment, but underlined the need for greater investment efficiency.


http://thenationonlineng.net/imf-economy-on-right-track/

we won't accept it, PMB has bribed IMF. Our blodas went to rob in Dubai because of harsh economy... BitterPOB can never have joy in anyway.

Okay

Ok

IMF don chop FG dollars come dey talk rubbish

Good economy wey no dey show for citizens body, that one na economy?

Really How much did APC give you

That's good and kudo's to FG's effort at diversifying the economy.

I am still imagining what effect the planned exit of ExxonMobil will have on the economy. Hoping it will mean opportunity for indigineous firms.

IMF trying to make naira depreciate more.

Some of the key sectors of Nigerian economy which are power and manufacturing sectors still remain in lower ebb.Until power issues are fixed there will be incipient growth in manufacturing sector and Nigerian economy will continue to crawl on the ladder of economic growth.

T

Come to read what some douche bags have to say!

it's time we stop lying and work things out in this country pls

God bless this team!

Goats will not be happy with this

I believe

Dey don't want to hear this. They just dont want to hear our nation is progressing. Even if you despise your leaders, wish your country well at least.

Which track is that

ENEMIES OF PROGRESS WON'T LIKE THIS.

I just wana go to canada.

Guess I didn't make the wrong choice after all �

That's what we want to hear
So cool

Give it a few more months and IMF will come out with a different verdict.

Nigeria, a country that could never be measured by any rational index.
Just wait until they implement the 50% tax and everything goes haywire.

Our aggressive idiotic jobless people from rejected erosion region will be sad because of this news

bugidon:
IMF don chop FG dollars come dey talk rubbish

Good economy wey no dey show for citizens body, that one na economy?

Bribed? Like seriously?
All because of ur hate for Buhari!!!
But if they had predicted doom for Nigeria's economy, that would hv given u orgasm shey?
How ur ilks continually wishes bad for this nation and her citizens is just sickening!

Once IMF don dey hail economy like this...my mind no dey rest at all...

We go soon enter structural adjustment programme (SAP).