IMF advises Nigeria to focus on structural reforms

The International Monetary Fund has harped on the need for Nigeria to embark on structural reforms and growth friendly fiscal consolidation based on non-oil revenue mobilization.

This was the position stated by the IMF Senior resident representative in Nigeria, Dr. Amine Mati at the September breakfast edition of the Nigeria-South Africa chamber of commerce in Lagos.

Dr. Mati who was the guest speaker at the event shared insights on “Nigeria: From Fragile to Stable Growth”.

He tasked the government to increase the fiscal space while scaling up priority expenditures and reducing FG interest to revenue ratio to about 30 percent.

In the area of non-oil sector revenue mobilization, he outlined tax administration measures to double compliance rate to at least 50 percent; Value Added Tax  reforms in the country; Rationalizing tax exemptions and incentives and the need to significantly scale up social and investment spending

The IMF representative also identified other key steps that must be taken by Nigeria, to achieve a stable economic situation, among which are maintaining a tight monetary policy; achieving a unified exchange rate and attaining an enhanced banking sector resilience

The Algerian born economist in his review of the policy of the Federal government, acknowledged the current reforms in the area of doing business in the country.

Dr Mati however shared that the October, 2018 World Bank Doing Business report will reveal the impact of the reforms carried out by the government.

He believed the implementation of the Economic Recovery and Growth Plan will go a long way in driving the growth of the nation’s economy.

Finally, he identified lower oil prices, tighter external market conditions, delays in policy implementation and banking sector fragilities as issues that downside risks to the economy.