Fidelity bank banner UBA banner
Nigeria’s economy remains vulnerable, IMF warns

By News Express on 08/03/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,710


The International Monetary Fund (IMF) on Wednesday said Nigeria was slowly exiting recession but remains vulnerable because its growth is tied to oil prices with improved revenues restricted to the energy and agriculture sectors.

The assessment, published in a report on Wednesday, came in its Article IV consultation, an annual appraisal of a country’s economy.

Reuters reported on the lender’s findings last week after seeing a copy of the document, which states that the fund expects Nigeria’s government to “muddle through” in the medium term.

Nigeria emerged from its first recession in 25 years, largely caused by low oil prices and militant attacks on energy facilities, in the second quarter of 2017.

The recovery has largely been due to higher crude prices and improved production after attacks ceased. Crude oil sales make up around two-thirds of government revenue and the majority of foreign exchange.

“The Nigerian economy is slowly exiting recession but remains vulnerable,” said the lender in its report.

It said the economy had been helped by higher oil prices, improved access to foreign exchange and foreign reserves rising to a four-year high but said improvements had not yet boosted non-oil, non-agricultural activity.

“Lower oil prices, tighter external market conditions, heightened security issues, and delayed policy responses are the main downside risks,” it said.

The Fund also repeated its calls for Nigeria to lift its remaining foreign exchange restrictions and scrap its system of multiple exchange rates.

The IMF has for more than a year called for Nigeria to simplify its complex foreign exchange system, used to reduce the impact of dollar shortages, which has left large gaps between official rates and various windows that certain groups can use to access other rates.

The report said the Fund recommends “removing multiple currency practices and unifying the exchange rate as quickly as possible”. It said the move would increase confidence, remove market distortions, and increase transparency.

The OPEC member’s gross domestic product (GDP) grew by 0.83 percent in 2017 after shrinking by 1.58 percent in 2016, which was its first annual contraction in 25 years.

“Under the baseline scenario, growth would pick up to 2.1 percent in 2018, from 0.8 percent in 2017, helped by the full year impact of greater FX availability and recovering oil production,” the Fund said in the report.

The Fund’s 2018 growth projection is unchanged from an estimate announced by the lender in December. (Reuters)

Source News Express

Posted 08/03/2018 05:13:24 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
UBA hosts cocktail reception in New York for...

Party Chieftain: No parallel APC congress in Ebonyi...

No nation is strong enough to stop insurgency:...

Boko Haram turns 52,311 Borno children into orphans...

CBN spends N6bn on ABU Business School

Kaduna Refinery production capacity increases to 60 per...

SARS inspector forces lady to transfer money at...

Nigerians’ shops in Kumasi under lock despite govt...

Ambassador killed by wife, lover

Orefunwa, LASU best student, shares joy of motherhood...

SERAP writes Osinbajo, seeks rejection of ‘proposed wasteful...

Trump returns to New York, amid rumors of...

 

Latest News BREAKING NEWS: IPOB Leader Nnamdi Kanu resurfaces How we plan to win 2019 election — Buhari, Atiku NIA places Nigerian agencies on red alert over ‘Chinese drugs containing human flesh’ Trump critic calls for military coup in U.S. Buhari’s in-law, Amosun, Abe lose out as APC submits candidates’ names 2019: Bayelsa group accuses royal father, others of working against PDP •Chides Ex-President Jonathan Ekiti Muslims angry with Governor Fayemi 2019: Parties rush to beat INEC deadline for submission of candidates list Lagos Assembly orders immediate return of PSP, disowns Visionscape NNPC washes hands off Abia pipeline explosion Mentally deranged woman caught with N200,000 PDP demands immediate reconstitution of Osun Governorship Election Tribunal

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (407,535 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,832 views) Shameless Genevieve Nnaji exposes breasts in public (315,177 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (257,816 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,756 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,544 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,340 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,801 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,512 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,032 views) Lagos plane crash: Journalist releases victims’ names (161,674 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,436 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,693) Business Verdict (52) Columnists (948) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (660) Global Business Monitor (304) International (2,545) Interview (165) Live Commentary (28) Love Matters (145) News (39,737) Opinion (1,124) Pidgin (13) Politics (7,292) Religion (881) Sports (1,733) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement