Nigeria must keep inflation down, says IMF

The International Monetary Fund (IMF) has said Nigeria should work to keep inflation down and also grow non-oil revenue if the economy must perform optimally.

This is even as the federal government said it had spent about N4.5trn on productive sector of the economy for the purpose of massive job creation; reduce insecurity and infrastructure development.

The IMF gave the advice yesterday when it presented its regional economic outlook for sub-Saharan Africa in Abuja. The IMF said though it projected Nigeria’s economy to grow at 2.1 per cent in 2019, it doesn’t reflect the potentials of Nigeria.

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“Monetary policy needs to be calibrated with an eye to keeping the inflation down and facilitating exchange rate, Abebe Aemro Selassie, the director, African department at the IMF said. “Specifically for Nigeria, I think we see some economic recovery”,  he said,  adding that growth in 2018 was close to 2 percent, while  2.1 percent is projected for 2019 but this is well below the potentials that this economy has”.

 He said Nigeria needs to maximize its potentials and grow its non-oil revenue. The minister of finance, Zainab Ahmed who also spoke at the event assured that the government was working hard to improve government earnings and recent efforts are proving positive. . Ahmed who was represented by the permanent secretary, special duty, Federal Ministry of Finance, Mohammed K Dikwa also said the current government had spent about N4.5trn into productive sector of the economy for the purpose of massive job creation; reduce insecurity and infrastructure development.

Godwin Emefiele, the CBN governor, who was represented by the deputy governor, economic policy directorate,  Joseph Nnanna, said it was possible Nigeria strikes a single digit inflation before the end of Q4 2019 as it is on the path of achieving price stability goal for a single level inflation.