The utility of the report may lie in its potential use by policymakers to ameliorate the sufferings of the masses and actually enact and see through policies that will boost the economy and bring relief to the over 80 million Nigerians living below the poverty line. For the avoidance of doubt, the poverty line is set by World Bank at $1.90 approximating N680.00.
Unsurprisingly, the thrust of the IMF report, released on Wednesday, is the need for urgent economic actions to stem the tide and boost the economy, according to Reuters. Issues to address include reforming the Nigeria complicated exchange system, security and global energy price fluctuations.
While these challenges are real, the country may well “muddle through” it all but a lot will depend on political stability especially as Nigerians go to the poll next year for the general elections.
Quotes from the report include:
“Comprehensive and coherent” economic policies “remain urgent and must not be delayed by approaching elections and recovering oil prices.
“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita.
“Further delays in policy action – including because of pre-election pressures – can only make the inevitable adjustment more difficult and costlier.”
“Moving towards a unified exchange rate should be pursued as soon as possible,” the IMF said. “(IMF) staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.”
Interested in learning more about the story? Visit the Reuters website.
