ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Saturday, January 23, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Nigeria’s economic reform plan not good enough – IMF

IMF boss with Nigerian officials [Photo: Ventures Africa]

Nigeria’s economic reform plan not good enough – IMF

byOladeinde Olawoyin
March 24, 2017
2 min read

The International Monetary Fund, IMF, is not satisfied with the Nigerian government’s economic reform efforts, a new report has shown.

Reuters news agency reports that the development could delay talks over $1.4 billion in international loans.

According to a 68-page IMF report obtained by Reuters, the Washington-based fund will urge Nigeria, a major oil producer, to introduce immediate changes to its exchange rate policy.

It would also say its recent reform plan is not enough to drag Africa’s biggest economy out of recession.

“Much more needs to be done,” the IMF said in the document, written after a final meeting between its representatives and top officials in Abuja, Nigeria’s capital.

“Further actions are urgently needed,” it said.

The IMF, the report said, would later issue its verdict on Nigeria’s economy on March 29.

The report, from the IMF’s acting secretary, which is addressed to members of its executive board, is set to form part of the IMF’s verdict, although Nigeria can request alterations.

The World Bank has been in talks with Nigeria for a loan of at least $1 billion for more than a year and the African Development Bank, AfDB, has $400 million on offer, but discussions have stalled over economic reforms.

RelatedNews

Amidst recession, Buhari to spend highest amount on Presidential Villa since assuming office

VIDEO: Boko Haram carrying out attacks in Nasarawa – Governor Sule

VIDEO: How my three-year-old daughter was sexually molested in Akwa Ibom school – Mother

TB Joshua urges Nigerians to accept COVID-19 vaccine

Nigeria is seeking the funding for infrastructure investment and to help plug an expected record deficit in this year’s budget as it boosts spending to try to end a recession.

Muhammadu Buhari, Nigeria’s president, has rejected further devaluation of the currency.

Nigeria has at least three exchange rates, including the official one; one for school and medical fees abroad; and a retail rate set by licensed exchange bureaus.

Dangote adbanner 728x90_2 (1)

The IMF said that if Nigeria did not remove foreign exchange restrictions and unify the exchange rates, it risked “further deterioration in (forex) reserves” and “a disorderly exchange rate depreciation”.

The report said Nigeria should also tackle its over-dependence on oil, low government revenues, a large infrastructure deficit, a rising debt service and double-digit inflation.

Nigeria has, however, not asked the IMF for fiscal support.

Earlier, Nigeria released an Economic Recovery and Growth Plan (ERGP) for 2017 to 2020 calling for a market-determined exchange rate.

But the IMF, in its report, says the ERGP “is more optimistic on growth than (IMF) staff… does not explicitly call for tighter monetary and fiscal policy in the near term, and assumes no immediate change in exchange rate policy – all of which are essential to reduce vulnerabilities and increase investors’ interest.”

Delays in adopting these policies increase vulnerabilities and risk reforms being politicised ahead of the 2019 elections, the IMF said.

ADVERTISEMENT

Nigeria’s woes go beyond its economy, said the report, adding that the northeast is in the throes of a humanitarian crisis caused by the Boko Haram insurgency, which is threatening millions with starvation.

Adoption of a fully flexible exchange rate would likely see the naira, which is propped up by the central bank but trades around 30 percent weaker on the parallel market, plummet in value. Recent injection of hundreds of millions of dollars by the Central Bank of Nigeria has, however, seen an increased convergence between the official and black market rates.

Sources said even without the IMF’s proposed reforms, the World Bank and AfDB were likely to offer the loans to Nigeria.

The report said Nigeria should articulate a sustainable fiscal policy and adopt structural reforms to diversify the economy away from its dependence on oil and promote competitiveness.

“The outlook is challenging, with growth expected to remain flat and macroeconomic imbalances to persist,” it said.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (5)
premiumtimes



PT Mag Campaign AD

Previous Post

How we stopped woman from jumping into Lagoon in Lagos — Police

Next Post

Anti-Magu forces launch fresh offensive, release another damning report

Oladeinde Olawoyin

Oladeinde Olawoyin

Oladeinde Olawoyin reports Business & Economy, Development and Lagos Metro at PREMIUM TIMES. A First Class graduate of Mass Communication from the University of Ilorin, Ilorin, he was nominated in the journalism category of The Future Awards Africa in 2017. Aside maintaining a column titled ‘SATURDAY SATIRE’, he also writes art and culture pieces on weekends. Twitter: @Ola_deinde

More News

Dangote truck rams into shops in Ondo

Many feared dead as Dangote truck rams into shops in Ondo

January 23, 2021
Delta Gov. Ifeanyi Okowa at the scene of the gas explosion at Agbor, Ika South LGA. Saturday23/1/21: BRIPIN ENARUSAI

Explosion at Delta gas plant kills four

January 23, 2021
FILE: President Mohammadu Buhari (right) and Vice President Yemi Osinbajo (left) President Mohammadu Buhari (right) and Vice President Yemi Osinbajo (left)

Amidst recession, Buhari to spend highest amount on Presidential Villa since assuming office

January 23, 2021
Burnt Houses

Insecurity: Houses, cars burnt as Oyo protesters defy Makinde, attack community leader

January 23, 2021
Lagos State Governor, Babajide Sanwo-Olu [PHOTO CREDIT: @jidesanwoolu]

UPDATED: Nigeria records 1,483 new COVID-19 cases

January 23, 2021
None of the coronavirus variants has been shown to ‘escape’ the vaccine. Kay Nietfeld/EPA

Coronavirus Variants: How did they evolve and what do they mean?

January 23, 2021
Next Post
Magu’s lawyer swears affidavit, insists Justice Salami made controversial ‘regret’ statement

Anti-Magu forces launch fresh offensive, release another damning report

Arik Air

Court fixes date for ruling on Arik Air's AMCON takeover

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


NITDA Ad




Advertisement






netherland biz school Advert

Zenith Advert

Heritage Advert
ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.