IMF says improvements in Nigeria had not yet boosted non-oil, non-agricultural activity.
IMF says improvements in Nigeria had not yet boosted non-oil, non-agricultural activity.

Nigeria Exiting Recession Slowly

Nigeria Exiting Recession Slowly

The International Monetary Fund on Wednesday said Nigeria was slowly exiting recession but remains vulnerable because its growth is tied to oil prices with improved revenues restricted to the energy and agriculture sectors.
The assessment, published in a report on Wednesday, came in its Article IV consultation, an annual appraisal of a country’s economy, Reuters reported.
Reuters reported on the lender’s findings last week after seeing a copy of the document, which states that the fund expects Nigeria’s government to “muddle through” in the medium term.
Nigeria emerged from its first recession in 25 years, largely caused by low oil prices and militant attacks on energy facilities, in the second quarter of 2017.
The recovery has largely been due to higher crude prices and improved production after attacks ceased. Crude oil sales make up around two-thirds of government revenue and the majority of foreign exchange.
“The Nigerian economy is slowly exiting recession but remains vulnerable,” said the lender in its report. It said the economy had been helped by higher oil prices, improved access to foreign exchange and foreign reserves rising to a four-year high, but said improvements had not yet boosted non-oil, non-agricultural activity.
“Lower oil prices, tighter external market conditions, heightened security issues, and delayed policy responses are the main downside risks,” it said. The fund also repeated its calls for Nigeria to lift its remaining foreign exchange restrictions and scrap its system of multiple exchange rates.
The IMF has for more than a year called for Nigeria to simplify its complex foreign exchange system, used to reduce the impact of dollar shortages, which has left large gaps between official rates and various windows that certain groups can use to access other rates.
The report said the fund recommends “removing multiple currency practices and unifying the exchange rate as quickly as possible”. It said the move would increase confidence, remove market distortions, and increase transparency.
The OPEC member’s gross domestic product grew by 0.83% in 2017 after shrinking by 1.58% in 2016, which was its first annual contraction in 25 years.

Short URL : https://goo.gl/Fj1sA1
  1. https://goo.gl/DLqb1B
  • https://goo.gl/JfbwTM
  • https://goo.gl/qkGEY8
  • https://goo.gl/GkRwzq
  • https://goo.gl/gmdqkP

You can also read ...

Jordan Approves New IMF-Guided Tax Law
Jordan’s cabinet on Monday approved major IMF-guided proposals...
IHS Markit to  Buy Rival Ipreo  for $1.8 Billion
Data firm IHS Markit Ltd. said it will buy smaller rival Ipreo...
US, China are nearing a deal to remove American sales ban against ZTE.
US President Donald Trump retreated from imposing tariffs on...
SBI Reports Record $1.1b Loss
State Bank of India reported a loss of Rs. 7,718 crore ($1.1...
EU, Mercosur Discuss Trade Deal
The European Union and South America’s Mercosur bloc could...
Philippines May Suspend Excise Taxes on Petroleum Products
The Philippine government will suspend the collection of...
Catalonia Main Risk to Spain Growth
The political situation in Catalonia is one of the main...
At present, the majority of investments are still being done in oil-gas and traditional industries while there is still almost no SME sector in the country.
While Saudi Arabia’s latest budget figures show progress in...

Add new comment

Read our comment policy before posting your viewpoints