November 24, 2010, 11:19 AM EST

Nov. 24 (Bloomberg) -- The International Monetary Fund said Nigeria’s economic growth is expected to be “exceptionally high” this year thanks to a “strong recovery” in oil production and growth in other sectors.

Still “inflation remains stubbornly high and international reserves continue to fall as the authorities support the exchange rate,” W. Scott Rogers, the IMF mission chief for Nigeria, said in an e-mailed statement today in Washington.

The IMF recommended the country’s central bank “conduct monetary policy with a view to reducing inflation to a single- digit level,” according to the statement.

--Editor: Kevin Costelloe

To contact the reporters on this story: Sandrine Rastello in Washington at srastello@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net.

homerac7:

I feel very bad every time I see ds kind of half truths being thrown at our faces. It looks more like mockery dn commendation to me. Why?

Truly, d GDP is rising due to higher increase in production of crude oil and very high market value for it. Also, d sustained high price of agricultural commodities in d international market. These two areas hav upped d national income very much dt we hav more to spend on construction, services and other sectors. But y has dt not translated into improved living condition for d common man?

Unfortunately, d real sector isn't exactly virile. D petroleum and agricultural sectors albeit part of real sectors dt r earning big currently aren't true reflectors of what are happening there. D petroleum sector is no doubt expanding due to relative peace in ND, while agricultural sector growth is being potrayed from its earnings wc is purely due to commodities process rise and not expansions in d sector itself. Ds sectors earn majorly from exported primary produces and loose most of d higher income attendants wt value addition.

Power is still epileptic as many industries can't run their processes on public utilities in order not to risk such fragile processes dt r sensitive to power cuts.

Roads r bad and rail is non functional for haulage thus making goods and services disribition costly.

Generally, infrastructures r in terrible or non existent states thus making business sustainance costly or on many cases unprofitable. Multiple taxation is another devil in a long list of problems of running businesses in Nigeria.

When we talk national economy, I believe we mean such activities of d populace dt involves exchange of goods and services and how it affects their welfare. But unfortunately, d SMEs hardly come into d equation of d newspaper headlines as ds thread topic. If u d reader has an acquaintance dt runs a SME in Nigeria, ask him how d report has reflected in business for him/her and c how he laughs off at u.

D report is shallow and conservative. D truth will b in a detailed macroeconomic analysis.

It's only a cosmetics surgery on true picture of our terrible economic performance. It's a travesty at best, I advise dt we don't swallow it hook, line and simmer.