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· To bail out Nigeria from its recurring balance of payment pressures, the International Monetary Fund (IMF) has advised the West African country to carry out market and exchange rate reforms
· Nigerian economy was likely to shrink by 3.4% in 2020.
· Recovery is projected to begin in 2021 with a modest growth of 1.4%, which will gradually pick up in 2022
· Nigerian economy was likely to shrink by 3.4% in 2020
To bail out Nigeria from its recurring balance of payment pressures, the International Monetary Fund (IMF) has advised the West African country to carry out market and exchange rate reforms.
IMF representative Ms Jesmin Rahman said in Washington D.C recently at the conclusion of the virtual mission with Nigeria said that the low crude prices this year due to the outbreak of Covid-19 pandemic ad adversely affected the economy and its revenue flows. According to the IMF, the Nigerian economy was likely to shrink by 3.4% in 2020. However, she said that the recovery is projected to begin in 2021 with a modest growth of 1.4%, which will gradually pick up in 2022.
The IMF representative maintained that the food prices are expected to ease in 2021; but inflation may remain in double digits . The government has to do a lot of effort in evolving a realistic exchange rate, while acknowledging that recently the government has taken some positive steps towards that; but more has to be done to strengthen the regime of a unified exchange rate regime. In order to realize more revenue, she said that the Nigerian government has to resort to steps for tax compliance and creating structures for fiscal transparency.
