Higher oil prices would support Nigeria’s economic recovery in 2018 - IMF

The International Monetary Fund (IMF) has said Nigeria’s economy might be on the path of recovery should there be a boom in oil prices.

The IMF in its annual Article IV review of Nigeria’s economy said a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita.

“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita,” the IMF said.

The role of 2019 general election

The IMF report also identified risks to growth including additional delays to implementing policies and reforms ahead of 2019 elections.

The report further said should the oil prices witness a price fall, the economy will witness capital flows reversed.

“Further delays in policy action -- including because of pre-election pressures -- can only make the inevitable adjustment more difficult and costlier,” the report said.