admin
The International Monetary Fund has reaffirmed its growth projection of 3,3 percent for Nigeria’s economy in 2024, compared to 2,9 percent last year. This forecast reflects improvements in the services and trade sectors.
However, the IMF noted that the growth outlook remains challenging for Africa’s most populous nation and leading oil producer. In March, food price inflation reached 40 percent, prompting concerns about food security.
According to the IMF mission chief for Nigeria, Axel Schimmelpfenning “If Nigeria grows at 3,3 percent that is just above the population dynamics, which is a big challenge.”
The Fund projected that fuel subsidies could be up to 3 percent of GDP this year due to the disparity between pump prices and their dollar cost, according to Schimmelpfennig. He further stated that officials are dedicated to gradually phasing out these subsidies within the next one or two years.
“The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards,” Schimmelpfenning said.
“We think a lot has happened. We also have to recognise that the problems built up over many years were quite severe. We can’t expect that everything is going to be resolved overnight,” he added.
Global rating agencies have upgraded Nigeria’s economic outlook as a result of reform efforts. Fitch, the latest agency to do so, has revised Nigeria’s outlook from stable to positive.
Schimmelpfenning noted that scaling up a cash transfer program and increasing government revenues to enhance service provision to citizens are key priorities
In terms of monetary policy, the IMF commended the recent interest rate hikes by the Central Bank of Nigeria (CBN) to address rising inflation, calling for a data-driven approach for further rate adjustments.– Business Insider Africa
Online Reporter