daniel chigunwe
The International Monetary Fund (IMF) has stated that the ongoing cost-of-living crisis in Nigeria has spiked due to stalled per-capita growth, high poverty rates, and increased food insecurity.
Nigeria faces a difficult external environment and wide-ranging domestic challenges.
Low revenue collection has hindered the government’s ability to provide services and make public investments.
Nigera’s growth is projected at 3 percent in 2024, as hydrocarbon performance revives, including from better control of theft.
This was revealed in its recent report titled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria.’
The international lender points out that low revenue collection has hindered the government’s ability to provide services and make public investments.
The report noted that headline inflation in Nigeria spiked to 27 percent year-on-year in October, with food inflation reaching 32 percent. This surge has been attributed to the impacts of fuel subsidy removal, exchange rate depreciation, and challenges in agricultural production within the country.
Latest estimates show 25 million (13 percent of the population) as food insecure. The poverty rate was 37 percent in 2022.
What the report said: “Nigeria faces a difficult external environment and wide-ranging domestic challenges. External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation,”
“Per-capita growth in Nigeria has stalled, poverty and food insecurity are high, exacerbating the cost-of-living crisis. Low reserves and very limited fiscal space constrain the authorities’ option space.
“Against this backdrop, the authorities’ focus on restoring macroeconomic stability and creating conditions for sustained, high and inclusive growth is appropriate.” – Business Insider Africa
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