The International Monetary Fund has said it is important for Nigeria to ensure significant revenue mobilisation to reduce its debt vulnerabilities.

It also said while the country’s economy was expected to begin its recovery process in 2021, it was expected to experience more recovery in 2022.

The organisation said these on Friday in a statement titled ‘IMF staff completes 2020 article IV mission to Nigeria’.

Part of the statement read, “Significant revenue mobilisation – including through tax policy and administration improvements – is required to create space for higher social spending and reduce fiscal risks and debt vulnerabilities.


“With high poverty rates and only a gradual recovery in prospect, revenue mobilisation will need to rely initially on progressive and efficiency-enhancing measures, with higher VAT and excise rates awaiting until stronger economic recovery takes root.”

The IMF noted that the country’s real Gross Domestic Product was contracting, inflation was increasing, and external vulnerabilities remained large.

Exchange rate and monetary policy reforms, increased revenue mobilisation and structural reforms would help to unlock Nigeria’s growth potential, it added.


It said, “The COVID-19 global pandemic is exacting a heavy toll on the Nigerian economy, which was already experiencing falling per capita income and double-digit inflation, with limited buffers and structural bottlenecks.

“Low oil prices and sharp capital outflows have significantly increased balance of payments pressures and, together with the pandemic-related lockdown, have led to a large output contraction and increased unemployment.

“Supply shortages have pushed up headline inflation to a 30-month high. Under current policies, the outlook is challenging. Real GDP is projected to contract by 3.4 per cent in 2020.


“The recovery is projected to start in 2021, with subdued growth of 1.5 per cent and output recovering to its pre-pandemic level only in 2022.”

The IMF emphasised the need for major policy adjustments and embracing broad market reforms.

Uyi168:
....
Meanwhile,
Whats emiefele trying to do here

Nazgul:
The problem here is that we don't have a president but a presidency comprising of lie Muhammed, Garba sheu...and some cabals behind the scene, and a non-functional Senate whose only job is to stamp whatever the presidency approves.

As long as the presidency keeps running this country debts are inevitable.

“The fact that Nigeria currently budgets more money for debt servicing (N2.7 trillion), than on capital expenditure (N2.4 trillion) is already an indicator that we have borrowed more money than we can afford to borrow. And the thing is that debt servicing is not debt repayment.

“Debt servicing just means that we are paying the barest minimum allowable by our creditors.And while spending 50% of our current revenue on debt servicing, this administration wants to take further loans of $29.6 billion! To say that this is irresponsible is itself an understatement.

alingo2013:
Buhari can you hear the warning by IMF or are you drinking tea with your cows

Uyi168:
....
Meanwhile,
Whats emiefele trying to do here

ogododo:

https://punchng.com/imf-urges-nigeria-to-reduce-debt-vulnerabilities/

lexy2014:


It's a good warning but imf wouldn't turn down a loan request from Nigeria in a million years