In a statement marking the conclusion of Nigeria’s Article IV consultation, the Executive Board of the International Monetary Fund commended the bold reforms implemented by Nigeria’s new administration and praised the authorities’ focus on revenue mobilization, governance, social safety nets and the improving political frameworks in the face of economic and social challenges.
According to the IMF, Nigeria has embarked on an ambitious reform path to restore macroeconomic stability and support inclusive growth. The authorities reformed fuel price subsidies and unified official exchange windows.
Inflation reached 32 percent year-on-year in February 2024, driven mainly by food price inflation of 38 percent and flexible financial conditions. As monetary tightening continues, inflation is expected to gradually decline to 24% annually by the end of 2024.
Growth in the Nigerian economy is projected at 3.3 percent for 2024, as oil and agricultural production is expected to improve with greater certainty. The financial sector remained stable, despite increased risks. Determined and well-sequenced implementation of the authorities’ policy intentions would pave the way for faster, more inclusive and resilient growth, the statement noted.
Given the downside risks, IMF Directors highlighted the importance of firm, well-sequenced and well-communicated reforms to restore macroeconomic stability, reduce poverty, support social cohesion and pave the way for faster, more inclusive and resilient growth .
Despite the IMF’s support for ongoing reforms, the positive effects have not yet been felt on the well-being of citizens, who suffer from the increase in the cost of living. Nigeria is struggling with huge public protests.
By: Economic Editor
Angola Portal
2024-05-10 21:43:03