Nigerians getting poorer, IMF Say


Nigerians are actually getting poorer, notwithstanding the recent ‘slow’ economic upturn recorded, the latest International Monetary Fund (IMF) report revealed on Wednesday.
As a result of this, the Fund has advised the Federal Government (F.G) to without delay adopt ‘urgent and coherent’ economic measures, so as to stem the tide.  
According to Reuters, the international organisation affirms the outlook for growth has improved but remains challenging.
“Comprehensive and coherent” economic policies “remain urgent and must not be delayed by approaching elections and recovering oil prices,” The Fund said in its annual Article IV review of Nigeria’s economy.
“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.
In the report, it identified risks to growth including additional delays to implementing policies and reforms ahead of 2019 elections, security tensions, and oil prices, a fall in which could see 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.
Concerning, the country’s ‘complex’ foreign exchange regime, IMF advised the handlers of the economy to reducing as they go, the huge disparity between official rates and other windows.
 “Moving towards a unified exchange rate should be pursued as soon as possible,” the IMF said.
“(IMF) staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.”

TAG