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Uche Usim and Marcus Nkire, Abuja
As Nigeria grapples with socio-economic challenges, the International Monetary Fund (IMF) on Tuesday, tasked the Federal Government and its fiscal policy authority to keep inflation down while growing non-oil revenue in order to sustain growth of the economy.
This was as the Central Bank of Nigeria (CBN) disclosed that it has spent about $109billion on the Importer and Exporter window since it was introduced in 2017. The IMF gave the advice yesterday in Abuja when it presented its Regional Economic Outlook for sub-Saharan Africa in Abuja.
The advice is coming amidst anxiety over the nation’s rising debt portfolio currently standing at over N24.3 trillion.
Speaking through Abebe Aemro Selassie, the Director, African Department, the IMF noted that although it projected Nigeria’s economy to grow at 2.1 percent in 2019, the projection does not reflect the potential of Nigeria.
He insisted that monetary policy needs to be calibrated in a manner that tapers inflation, while facilitating a stable exchange rate.
He said: “Specifically for Nigeria, I think we see some economic recovery. Growth in 2018 was close to 2 percent and 2.1 percent is projected 2019, but this is well below the potential that this economy has” he said.
He added “Nigeria needs to maximise its potential and grow its non-oil revenue. Non-oil revenue is too small, about four percent to GDP “Thus, it’s important for government to generate more resources to meet infrastructural deficit”, he stated.
Selassie also advised that Nigeria should revisit its policies to re-calibrate them wherever financing allow.
“Also Nigeria should improve tax revenue mobilisation, improve public finance management, look at efficiency of spending and work on looking at policy induced barriers”, he added.
Meanwhile the Central Bank of Nigeria (CBN), has dismissed the alarm raised by state governors over the possibility of the economy relapsing into recession next year.
CBN Deputy Governor Economic Policy Dr. Joseph Nnanna, who represented the CBN Governor Mr. Godwin Emefiele, dismissed the’ claims at the public presentation of the Spring 2019 edition of Regional Economic Outlook (REO) by International Monetary Fund (IMF) in Abuja.
He said: “We are making smooth progress towards growth and by end of 2019, all things being equal, we are going to likely have between 2.8percent and 3per cent GDP growth rate.
“Since the third quarter of 2016, when we started coming out of recession, we have embarked on tight monetary policy in all its ramifications.
