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Nigeria Facing Worsening Economic Crisis, Says IMF - Politics - Nairaland

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Nigeria Facing Worsening Economic Crisis, Says IMF by ogododo: 7:59am On Feb 12
The International Monetary Fund has said stalled per-capita growth, poverty and high food insecurity have exacerbated the ongoing cost-of-living crisis in Nigeria.

The report came amid rising inflation, exchange crisis, weak economic growth and business shutdowns.

The global lender said this in a new report titled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria.’

According to the report, low revenue collection has hampered the provision of services and public investment.


It noted that headline inflation reached 27 percent year-on-year in October (food inflation 32 per cent), reflecting the effects of fuel subsidy removal, exchange rate depreciation, and poor agricultural production in the country.

The report read in part, “Nigeria faces a difficult external environment and wide-ranging domestic challenges. External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation.

“Per-capita growth in Nigeria has stalled, poverty and food insecurity are high, exacerbating the cost-of-living crisis. Low reserves and very limited fiscal space constrain the authorities’ option space. Against this backdrop, the authorities’ focus on restoring macroeconomic stability and creating conditions for sustained, high and inclusive growth is appropriate.”


Amid Nigeria’s current economic difficulties, the report noted that on January 12, 2024, the Executive Board of the International Monetary Fund concluded the Post Financing Assessment and endorsed the Staff Appraisal on a lapse-of-time basis. It added that Nigeria’s capacity to repay the IMF is adequate.


IMF downgrades Nigeria’s economic growth to 3%
The IMF also expressed optimism that the new administration had made a strong start, tackling deep-rooted structural issues in challenging circumstances.


Immediately, it adopted two policy reforms that its predecessors had shied away-namely fuel subsidy removal and the unification of the official exchange rates.

It added, “The new CBN team has made price stability its core mandate and demonstrated this resolve by dropping its previous role in development finance. On the fiscal side, the authorities are developing an ambitious domestic revenue mobilisation agenda.”

According to data from the Debt Management Office, Nigeria currently owes the IMF the sum of $2.8bn. The Federal Government, in its 2024 budget plans to spend about N8.2tn on debt servicing.

Professional services firm, PricewaterhouseCoopers in a new report, warned that Nigeria’s rising debt service cost might affect the country’s debt servicing ability, credit rating outlook and borrowing cost.

PwC said debt service could rise from N8.25tn in 2024 to N9.3tn in 2025 and further to N11.1tn in 2026.


“With a high debt servicing to revenue ratio, the government aims to increase domestic debt in 2024 to meet its deficit funding requirements,” the report read in part.
https://punchng.com/nigeria-facing-worsening-economic-crisis-says-imf/?amp

9 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Validated: 8:01am On Feb 12
Tinubu and his supporters are playing with the sensibilities of Nigerians. The suffering will soon push people to fight back soon.

135 Likes 6 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by greenermodels: 8:09am On Feb 12
In summary, the IMF is asking Tinubu to increase government revenue by increasing existing taxes and introducing new ones? I'm asking because that's what I infer from their comment about Nigeria having a low revenue to debt ratio.

34 Likes 4 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Never4getU: 8:12am On Feb 12
Useless IMF and WorldBk after achieving their set agenda to continue to impoverished Africa.

106 Likes 4 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Cassandraloius: 8:14am On Feb 12
Something is highly wrong with them.

14 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by AwokenVawulence: 8:15am On Feb 12
Elections have consequences

48 Likes 2 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by surgical: 8:20am On Feb 12
APC is a contraption which should not have been allowed to form a government at all, they are behaving like the biblical thief that come to steal, to destroy and kill. this is their second government and these are the only dividend they are capable of giving
Previous governments will look for and scout for competent hands and technocrats from around the world to assist them but APC government will bring cronies and incompetent party members friends and sycophantic supporters who do not have anything to offer, good governance is not the priority of APC from buhari to Tinubu, their agenda is to enjoy the spoils of office travel the world, the masses can go to hell
The APC is not a party Nigerians should accommodate henceforth

65 Likes 7 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Nvestor02: 8:21am On Feb 12
IMF don't know what they are saying, they want Tinubu to keep borrowing money from world bank for them to keep their relevancy.

Little did they know that Tinubu is a genius And can generate the unbelievable amount of money internally that would met up to our infrastructure demands.

IMF should watch on how our GDP will grow in the next year.... Some organizations has already ranked it as one of the fastest growing in Africa for this months.

It's now for the citizens to meet up to the new reality, govt has stopped paying for some certain things for them.


And also, I commended Tinubu for fighting insecurity, because there has been many reportage of how Soldiers, Amotekun and police are arresting the bandits these days.

Tinubu should further declare more war against Insecurity.

I surely know that new minimum wage would be implemented before March because the negotiation for it is already going on.

38 Likes 4 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Nbote(m): 8:28am On Feb 12
Even a 6months old baby knows the government is clueless

60 Likes 2 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by RepoMan007: 8:30am On Feb 12
Agrarian enclave using oil money to buy hair extension and iPhones. Why won't per capita growth stall?

8 Likes 2 Shares

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Houseofglam7(f): 8:31am On Feb 12
undecided

1 Like

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Anguldi(m): 8:31am On Feb 12
There's nothing that can be done about it sad

Am sorry tongue

Sope otilo cheesy

E reach founder and developer of Lagos, e don cast. More naira devaluation loading angry

8 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by mrvitalis(m): 8:31am On Feb 12
Lol tell that to APC for them everything is good

8 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by NairalandForumo: 8:31am On Feb 12
We warned them about Tinubu, they did not listen, for those planning any protest, please just keep your protest away from any Igbo man and the entire south east, we will not get blamed for trying to help Nigeria again.....

14 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by HIGHESTPOPORI(m): 8:32am On Feb 12
Since Apc was formed,Nigeria have never known peace

28 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by seunayantokun(m): 8:32am On Feb 12
People wey dey happy say we dey face famine.

4 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by BluntCrazeMan: 8:32am On Feb 12
Same IMF

2 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Johnames: 8:32am On Feb 12
The country is on the edge. Prices of commodities keep going up every minute. No price regulation, people are just using this inflation to exploit people to death. If something is not done quick, crime will increase.

4 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by abobote: 8:32am On Feb 12
Tinubu is a disaster

6 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Cutezt(m): 8:32am On Feb 12
Like, I went home and realized my dogs food was finished, instead of going the long distance to the mall, I decided to get her indomie for the night, only for me to get to the nearby shop and was told indomie belleful is now 700 NAIRA.

Haaa! All I can say is that I thank God I am able to afford it, but what about people who can't? It's crazy out here folks.

24 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by RepoMan007: 8:32am On Feb 12
Nbote:
Even a 6months old baby knows the government is clueless
The structure is 95% responsible but who dares the religiously brainwashed north or their interests? No one wants their cries. It comes with political consequence because they have the numbers.

3 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by ABC101FF: 8:33am On Feb 12
Most of the previous and present policies were premised on IMF's doomsday economic counseling coupled with repeated policy gaffes by the airhead mandate thief.

2 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by malali: 8:33am On Feb 12
Good long term policies have been set in place.

However ameliorating short term policies needed right now.

Devaluing the naira is actually a good measure, if inflation can be controlled.

Raising wages might not be the solution as we will just be back where we started.

Instead provide more jobs at the current rate of pay. Increase social welfare, support mega agricultural investments.

Export crude to meet assigned OPEC quotas, then subsidize additional crude to Dangote refinery with the aim to sell cheaper petrol to Nigerians, which should be allocated and monitored against 3rd party sales and racketeering. Truth is some states are stronger than others. So purchasing powers might never favor some states at current prices....There is abject poverty in some nooks and crannies of Nigeria. Those people still need subsidy, regardless of what anyone says.

Sanitizing the financial sector, curb inflation, raise interests rate, promote 100% made in Nigerian goods consumption.

Inflation is the problem, not minimum wage, not dollars/exchange rate. If you raise minimum wage and artificially Peg the exchange rate, it will worsen the inflation, you have to allow market forces to take its course.

This will result in pain and hardship, but will sanitize the system....the biggest question is can we eventually maintain a sanitized system ?

7 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Macphenson: 8:33am On Feb 12
k
Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Akwamkpuruamu: 8:33am On Feb 12
We have a government that lacks legitimacy and have no clue on economic governance. The grab it and run
Re: Nigeria Facing Worsening Economic Crisis, Says IMF by PheelzAlmighty: 8:33am On Feb 12
Naaaah, we are fine. Nigeria is doing just fine.





Tinubuu and his supporters, come sit and enjoy.
#spits
Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Quest7777: 8:34am On Feb 12
Nigeria as it's presently structured, can never be governed effectively.
Every successive government has been worse than it's predecessor and the trend will continue, till the country is restructured.

2 Likes

Re: Nigeria Facing Worsening Economic Crisis, Says IMF by Parydelegate: 8:34am On Feb 12
Same IMF that advised Government to remove subsidy and devaluate the naira. Lol

9 Likes

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