konga Ad Campaign konga Ad Campaign konga Ad Campaign
ADVERTISEMENT
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Friday, July 1, 2022
Premium Times Nigeria
  • Home
  • Gender
  • 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
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
  • Home
  • Gender
  • 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
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Recession: Senate, Reps ask Buhari to address joint session of National Assembly

President Muhammadu Buhari and ministers at a Federal Executive Council meeting

Nigeria’s current growth insufficient to reduce unemployment, poverty – IMF

byBassey Udo
August 2, 2017
2 min read

The International Monetary Fund, IMF on Wednesday said the current 0.8 per cent growth in the Nigerian economy in the first half of 2017 was still not sufficient to reduce unemployment and end poverty in the country.

In a statement at the end of its Staff visit to Nigeria, the IMF said Nigeria’s economic challenges persist in spite of federal government’s implementation of a number of important measures, including Economic Recovery and Growth Plan, ERGP.

The federal government had launched the ERGP to drive it economy diversification strategy and pull the economy out of recession.

The IMF visiting team led by the Senior Resident Representative and Mission Chief for Nigeria, Amine Mati, was in Nigeria between July 20 and 31 to discuss recent economic and financial developments, update macroeconomic projections, and review reform implementation.

“The economic backdrop remains challenging, despite some signs of relief in the first half of 2017. Economic activity contracted in the first quarter of the year by 0.6 percent, mainly as maintenance stoppages reduced oil production,” the IMF said in its latest report released on Wednesday.

It said following four quarters of negative growth, the non-oil economy grew by 0.6 per cent between last year and this year, amid a rebound in manufacturing and continued strong performance in agriculture.

Although various indicators suggest an uptick in activity in the second quarter of the year, helped by favourable base effects, it said headline inflation, which decreased to 16.1 percent in June 2017, from 17.28 per cent in April, remained high despite tight liquidity conditions.

The IMF noted significant revenue shortfalls in the first half of the year, with a high interest-payments to revenue ratio of 40 per cent at end of June, and projected to increase further under current government policies.

High domestic bond yields and tight liquidity policies by government and the Central Bank of Nigeria, CBN, it stated, continue to crowd out private sector credit.

Other challenges identified include Nigeria’s low growth environment and the banking system’s exposure to the oil and gas sector and non-performing loans, NPLs, which grew from six percent in 2015 to 15 percent in March 2017.

On the ERGP initiated to drive the diversification strategy, the IMF noted the improved security in the Niger Delta through strengthened engagement by the federal government.

It commended the monetary policy intervention by the CBN through its new investor and exporter FOREX window, saying it not only provided impetus to portfolio inflows, but also helped increase the country’s foreign reserves above $30 billion, as well as reduce parallel market premium.

It noted steps taken in implementing the power sector recovery plan, introducing a voluntary income and asset declaration programme and moving forward the 60-day national action plan to improve the business environment.

Besides, it said, progress was also ongoing within the oil and energy sector through implementation of a new funding mechanism for cash calls.

International Monetary Fund (IMF)
International Monetary Fund (IMF)

“However, near-term vulnerabilities and risks to economic recovery and macroeconomic and financial stability remain elevated. At 0.8 percent, growth in 2017 will not be sufficient to make a dent in reducing unemployment and poverty,” it stated.

It also expressed concerns about delays in policy implementation in the budget, which led to a reversal of favourable external market conditions, possible shortfalls in agricultural and oil production.

Such delays, it said also brought additional fiscal pressures, continued market segmentation in a foreign exchange market that has continued to depend on CBN interventions, with banking system fragility representing the main risks to the outlook.

To bring about urgent economic recovery, the IMF proposed adoption of coherent policies, particularly immediate implementation of specific priorities to help realize the ERGP goals.

In the short term, the IMF called for a stronger push for front-loaded fiscal consolidation through a sustainable increase in non-oil revenues to create space for infrastructure spending, social protection, and private sector credit.

Other recommendations included a tight monetary policy that avoids direct financing of the government, promotion of a unified and market-based exchange rate, and rapid implementation of structural reforms.

“Pursuing these policies would help reduce macroeconomic vulnerabilities and create an environment for a diversified private-sector led economy,” it said.

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


CITIZEN-FM AD


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: Call Willie - +2348098788999






PT Mag Campaign AD

Previous Post

Russia takes over U.S. compound in Moscow in retaliation over sanctions

Next Post

Bus conductor dies in road accident

Bassey Udo

Bassey Udo

Bassey Udo is PREMIUM TIMES' Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

More News

Ike Ekweremadu and wife

Alleged Organ Harvesting: Court orders NIMC, others to release Nwamini’s biodata to Ekweremadu

July 1, 2022
Dangote Cement Plc

Dangote Cement’s group finance offficer resigns

July 1, 2022
Deborah Samuel - killed in Sokoto

Religious Freedom: U.S. senators want Nigeria re-designated as country of concern

July 1, 2022
Shell reports falling profit amid oil price slump

Shell suspends plan to sell Nigerian onshore oil assets

July 1, 2022
U.K-Nigeria Migration Deal; P.C Priti Patel/ Twitter

UK signs migration deal with Nigeria

July 1, 2022
Special adviser on education to Governor Babajide Sanwo-Olu, TOKUNBO WAHAB

INTERVIEW: Why Lagos govt is establishing new universities – Governor Sanwo-Olu’s adviser

July 1, 2022
Next Post
FILE PHOTO: FRSC officials at a scene of an accident

Bus conductor dies in road accident

Nigeria Prisons used to illustrate the story.

Nigerian Prisons Service redeploys 32 senior officers

Leave Comment

Search

AUN-PT Ad




Access Bank Ad







Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,901,774 other subscribers.

Advertisement




netherland biz school 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
  • #PandoraPapers
  • Gender
  • 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
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • DONATE
  • About Us
  • Advert Rates
  • PT Hausa
  • Dubawa NG
  • Careers
  • Contact Us
  • Digital Store

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.