BusinessTrending Story

Nigeria’s sluggish economic growth too weak to lift millions out of poverty – IMF

425

The International Monetary Fund (IMF) says Nigeria’s slow economic growth too weak to lift millions of Nigerians from poverty, despite 137 percent growth in real Gross Domestic Product (GDP) from 0.8 percent in 2017 to 1.9 percent last year.

The IMF, recognising Nigeria’s growth “on the back of improvements in manufacturing and services, supported by spillovers from higher oil prices, ongoing convergence in exchange rates and strides to improve the business environment,” said “persisting structural and policy challenges continue to constrain growth to levels below those needed to reduce vulnerabilities, lessen poverty and improve weak human development outcomes, such as in health and education.”

To solve the “large infrastructure gap, low revenue mobilization, governance and institutional weaknesses,” in the country, the IMF told the federal government should end fuel subsidies and create a credible timeline to recapitalise weak banks in the country, and told the Central Bank of Nigeria (CBN) to stop its direct intervention in the foreign exchange market.

The IMF directors in a press statement emailed to Per Second News, said they “welcomed the authorities’ tax reform plan to increase non-oil revenue, including through tax policy and administration measures,” and “stressed the importance of strengthening domestic revenue mobilization, including through additional excises, a comprehensive VAT reform, and elimination of tax incentives.”

The international organisation also recommended increasing funding for health and education, and noted that “phasing out implicit fuel subsidies while strengthening social safety nets to mitigate the impact on the most vulnerable would help reduce the poverty gap and free up additional fiscal space.”

From the IMF’s assessment of the Nigerian economy, it is concluded under current policies, “outlook remains therefore muted. Over the medium term, absent strong reforms, growth would hover around 2½ percent, implying no per capita growth as the economy faces limited increases in oil production and insufficient adjustment four years after the oil price shock.

“Monetary policy focused on exchange rate stability would help contain inflation but worsen competitiveness if greater flexibility is not accommodated when needed. High financing costs, on the back of little fiscal adjustment, would continue to constrain private sector credit, and the interest-to-revenue ratio would remain high.”

Leave a comment

Related Articles

Breaking: Tinubu Renames University of Maiduguri Muhammadu Buhari University

President Bola Tinubu has announced the renaming of the University of Maiduguri...

Nigeria’s Inflation Rate Declines for Third Consecutive Month to 22.22% in June 2025

Nigeria’s headline inflation rate has eased for the third consecutive month, declining...

UBA Seeks to Raise N157bln through Rights Issue

United Bank for Africa Plc has announced plans to raise over N157...

FirstBank Partners UN Global Compact to Unlock Capital for Sustainable Development

FirstBank, the premier financial institution in West Africa and a key provider...

UBA Celebrates Decade of Digital Innovation with VERiCASH, Rewards Loyal Customers

Africa’s Global Bank, United Bank for Africa (UBA) Plc, is celebrating a...

UBA Enables International Transactions on Naira Cards

United Bank for Africa (UBA) has announced the resumption of international transactions...

FirstBank Unveils Advanced Facial Biometric Technology on FirstMobile

FirstBank, the West Africa premier financial institution and financial inclusion services provider...

Nigeria Ramps Up $16bln Investment Drive in Oil and Gas Sector

By Joycelyn Ellakeche Adah The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has...

Nigeria’s Inflation Rate Edges Down to 22.97% – NBS 

Nigeria’s inflation rate saw a slight dip in May 2025, reaching 22.97%...

World Bank: Global Economy Slumps to Weakest Performance in Years, Excluding Recessions

The World Bank’s latest Global Economic Prospects report has warned that global...

NCC New Rule: Bank Customers to Pay USSD Charges Using Airtime

The Nigerian Communications Commission (NCC) has mandated that Deposit Money Banks (DMBs)...

FirstBank Achieves New Feat: N1Bln Disbursed in One Day Through Agent Credit Scheme

By Tosin Ajayi In a significant milestone by the nation’s pioneer financial...

FirstBank’s Temporary Overdraft Product Boosts Businesses, Secures Retail Dominance

By Tosin Ajayi As a strategic lifeline to empower businesses with swift,...

#NoNoiseJustSigns: Access Bank Unveils DiamondXtra Season 17, To reward Customers with over N200m

Access Bank has kicked off the 17th season of its DiamondXtra flagship...

I took risks, pushed boundaries to sustain my brand for 20 years – Mercy Aigbe

Mercy Aigbe has taken a moment to celebrate her journey in the...

Tony Elumelu Receives Gabonese Presidential Honour for Africa’s Economic Development 

President of the Republic of Gabon Brice Clotaire Oligui Nguema, has conferred...

WTO’s Okonjo-Iweala Calls on Africa to Boost Intra-Regional Trade Amid US Tariffs

Faced with broad tariffs declared by the United States on African goods,...

US Dollar Climbs to N1,605 as Naira Weakens

The Nigerian naira has continued its depreciation against the US dollar at...

Just in: Inflation rises to 24.23% in March 2025

Nigeria’s headline inflation rate has increased to 24.23% in March 2025, up...

Transcorp’s Market Value Surges to N4.5trn – Tony Elumelu

Transcorp Group, a leading conglomerate in Nigeria, says its listed entities now...