Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
forex
Advertisement
Stanbic IBTC
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Business

FG needs fundamental policy reset to durably exit economic crises – IMF

The IMF says that Nigeria needs a  fundamental policy reset to durably exit the current economic crisis.

Published

on

Kristalina Georgieva, IMF boss hints at 'synchronized slowdown' in global growth , IMF: 40% of African countries can't pay back their debts , Nigeria worse off, posts grows lower than LIDC benchmark - IMF, Measures introduced by Nigeria to ensure transparent use of the $3.4b IMF loan

The International Monetary Fund says that Nigeria needs a  fundamental policy reset to durably exit the current economic crisis.

The IMF disclosed this in a statement titled, “Nigeria: 2020 Article IV Consultation – Press Release.”

IMF revealed that Nigeria’s economy is at a critical juncture.

Citing that the economy was already weakened by falling per capita income, double-digit inflation, “limited buffers and significant governance vulnerabilities has been hit hard by the global pandemic. Plunging oil prices and sharp capital outflows in 2020Q1 significantly increased balance of payments (BOP) pressures which, together with the pandemic-related lockdown in 2020Q2, have caused a historic output contraction.”

READ: IMF considers Nigeria’s loan request, FG gives reason for exclusion from debt relief program

The Fund warned that Nigeria has limited space to respond to the crisis because the consolidated government revenue-to-GDP ratio at 8% in 2019, which is among the lowest in the world.

In April 2020, Nigeria received IMF financial assistance amounting to $3.5 billion under the Rapid Financing Instrument (RFI) in the wake of the oil price shock. IMF urged that a fundamental policy reset is needed to durably exit this crisis.

“What set Nigeria apart are its weak pre-crisis fundamentals that threaten to turn a temporary crisis into a slump with more lasting consequences for employment and living standards.

“Long-running inward-looking policies have been stepped up in recent years through increased import restrictions, a partial border closure, administrative control of foreign exchange (FX) allocation and capital flow measures (CFMs),” it said.

READ: Nigeria needs structural and monetary policy reforms to unlock potential – IMF

IMF warned that Nigeria’s protectionist policies are yet to deliver its job, which is rich growth as the economy remains heavily dependent on the oil sector, through direct and indirect exposures, and vulnerable to periodic commodity shocks.

IMF praised the Federal Government for undertaken commendable and timely measures to counter the pandemic’s impact on lives and livelihood.

IMF mentioned policies include palliative measures, a strict lockdown, removal of fuel and electricity subsidies as well as fiscal and monetary policy support for the health sector and the economy. Others include higher subsidies on Central Bank of Nigeria’s (CBN) credit intervention facilities and regulatory forbearance measures to ease debt service.

bitcoin train

The Fund also warned that Nigeria’s Covid-19 plan could face difficulties through potential funding gaps as a plan is yet to be developed for Covid-19 vaccine purchase, distribution and administration.

Binance

READ: IMF board raises medium term target for precautionary reserves

What you should know

  • Recall Nairametrics reported last month that the International Monetary Fund (IMF)  expressed optimism about the global economy but warns that the new COVID 19 variant could affect the global economic growth, according to its latest World Economic Outlook.
  • According to the report, “the institution now expects the global economy to grow 5.5% this year — a 0.3 percentage point increase from October’s forecasts. It sees global GDP (gross domestic product) expanding by 4.2% in 2022”.
  • IMF also advised that the FG should implement major policy adjustments embracing broad market and exchange rate reforms are needed to address recurrent BOP pressures and raise the medium-term growth path.

Jaiz bank ads
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

School kidnappings: Military and the Police will continue to go after kidnappers – Buhari

The President has assured Nigerians that the military and the police will continue to go after kidnappers.

Published

on

Military located bandits in kankara, Q1 2020 National Debt report, Buhari finally speaks on NDDC probe, urges NA to act with a sense of urgency,National Human Rights Commission,Presidency bows to pressure, agrees to demand made by EndSARS protesters, Our economy is too fragile to bear another round of lockdown-Buhari, Zarbarmari: Massacre by Boko Haram is nothing short of senseless, barbaric, gruesome and cowardly- Buhari

President Muhammadu Buhari stated that the Federal Government is working hard to bring an end to the recent incident of mass school kidnappings in Northwestern Nigeria and urges the Military and the Police will continue to go after kidnappers.

The President disclosed this in a statement on Tuesday morning , reacting to news of the release of schoolgirls kidnapped in Zamfara State.

I join the affected families and the people of Zamfara State in welcoming and celebrating the release of the abducted students of GGSS Jangebe.

This news bring overwhelming joy. I am pleased that their ordeal has come to a happy end without any incident,” Buhari said.

Buhari added that the FG needs the support of local communities to bring an end to school kidnappings by terrorists, and urges the authorities to keep going after them.

We are working hard to bring an end to these grim and heartbreaking incidents of kidnapping. The Military and the Police will continue to go after kidnappers. They need the support of local communities in terms of human intelligence that can help nip criminal plans in the bud,” he said.

What you should know 

  • Nairametrics reported today that The Governor of Zamfara State, Dr. Bello Matawalle stated the kidnapped schoolgirls of the Girls Secondary School, Jangebe, have been released after being kidnapped last week.

Continue Reading

Business

US supports appointment of new service chiefs, affirms close ties with Nigeria

The US Government has endorsed President Buhari’s appointment of ex-military service chiefs.

Published

on

FG to attract foreign investors for Actors Guild of Nigeria

The United States Government has expressed its support for the recent appointment of military service chiefs by President Muhammadu Buhari.

The new appointments are expected to bring new approaches to combating terrorism in the northeast and provide national security across the country.

According to a statement signed by the spokesperson for the US Department of States, Ned Price, this disclosure was made by the new US Secretary of State, Antony J. Blinken, during a phone call conversation with Nigeria’s Minister for Foreign Affairs, Geoffrey Onyeama, on Monday, March 1, 2021.

He also acknowledged the threats that violent extremists posed to Nigeria and regional security as a whole.

READ: President Biden revokes Trump’s ban for green card applicants in US

While highlighting the importance that the United States placed on its relationship with Nigeria, Secretary Blinken outlined a holistic approach to the US-Nigeria partnership based on their shared values of democracy, respect for human rights and robust people-to-people relations.

The statement said that as part of efforts to ensure a good relationship with Nigeria, Blinken referred to President Biden’s revocation of immigrant visa restrictions on Nigeria as an affirmation of the close ties between Americans and Nigerians.

He also reiterated the support of the United States for Dr Ngozi Okonjo Iweala as the new Director-General of the World Trade Organization (WTO).

Talking about the conversation with his US counterpart, Geoffrey Onyema expressed his delight at the discussion which covered a broad range of bilateral and multilateral issues.

READ: FG reacts to inclusion of Nigeria on religious freedom blacklist by United States

He said, “Very glad to re-engage, through a very nice phone call with US Secretary of State, Secretary Blinken. We covered a broad range of bilateral and multilateral issues and look forward to increased cooperation.”

On his part, Secretary Blinken said, “Delighted to speak with Foreign Affairs Minister, Geoffrey Onyema. We deeply value our bilateral relationship with Nigeria and look forward to rejuvenating our partnership based on shared values of democracy, respect for human rights, and robust people-to-people relations.”

What this means

This appears to be a renewed partnership and bilateral relationship between the United States and Nigeria, which seemed to have suffered some setbacks during the Trump administration.

bitcoin train

This was clearly evident in visa restrictions on Nigeria and the refusal of the last US administration to support the confirmation of Nigeria’s Ngozi Okonjo-Iweala as the Director-General of the WTO despite the unanimous support of member states.

Binance

 

Jaiz bank ads

Continue Reading
Advertisement




Advertisement

Nairametrics | Company Earnings