Organisation concludes article IV consultation with Nigeria.

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April 3, 2017 2:29 PM

The International Monetary Funds (IMF) executive board on Thursday, March 30, 2017 released its article IV consultation with Nigeria government officials.

IMF

Under the Article IV of the IMF’s Article of Agreement, the body holds bilateral discussions with members annually. The IMF’s team visits the country, collects economic and financial information, and as well discusses with officials of the county on economic developments and policies.

Excerpt from the board summary as presented by the Chairman noted that Nigeria should lifts its foreign exchange restriction and also scrap its multiple exchange rates system to revive the country’s economy.

The Washington-based fund also forecasted Nigeria’s economy to grow by 0.8 and 1.9 percent in 2016 and 2017 respectively. The economic outlook also suggests the country having a positive terms of trade for 2017 as the oil production is projected at 2 million barrels/day and global oil price averaging $56.3/barrel.

The body noted that policy uncertainty, public debt crowding-out effects and FX market distortions would negatively greater impact on economic performance of Africa’s largest economy. “The continued policy pegging of exchange rates by the CBN would lead to increasingly overvalued naira, deteriorated non-oil trade balance and external reserves being below the adequate level (UD$30 billion - projected at US$ 27.1 billion and US$26.7 billion for 2017 and 2018 respectively)”, the outlook noted.

The country’s recently released Economic Recovery and Growth Plan was supported and recognised as a great leap towards macroeconomic stability, social infrastructural development, building a globally competitive economy as well as strengthen governance.

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