Global growth will be disappointing in 2016- IMF's Lagarde

IMF Lauds FG’s Fiscal, Diversification Policies

Nse Anthony-Uko

ABUJA, (Sundiata Post) – The International Monetary Fund (IMF) has expressed satisfaction with the Nigerian Government’s use of fiscal policies in general and tax policy in particular as part of the strategy for development. The world body asserted that the line of thinking was precisely how fiscal policy should be thought in developing countries as part of their development strategy.
Speaking at a press briefing as part of the on going Spring Meetings of the IMF and World Bank, the director, Fiscal Affairs Department, Mr Vitor Gaspar said that he was in Nigeria recently and was happy that the government is adopting that strategy as a development model.
Also speaking along that line, the Senior Economist IMF,Africa Department, Ms Catherine Patillo said that the Fund welcomed the Buhari administration’s Economic Recovery and Growth Plan (ERGP).

She expressed her excitement with the focus on diversification. “The policy focuses on diversification and in addressing some of the deep-rooted problems related to strengthening structures, which is neccesary for diversification and in building revenues, particularly oil revenue. So, we very much welcome the ERGP”.
Patillo further said that “As you are aware Nigeria, went into recession last year, there have been forecasted recovery, but still very fragile this year and the need to address the fiscal situation is urgent. Our recommendation is for the continued fiscal consolidation. One striking statistics I think is the fact that over the past years, the ratio of interest payment to tax revenue has doubled to 66 per cent in Nigeria. So, two-thirds of all tax revenue is going into interest payment, illustrating the need to raise tax revenue. That would allow the government to implement the social and growth-friendly policies that are part of the objectives of the ERGP.”
Refering to an earlier interface with the Nigerian government, she stressed that “the types of strong fiscal institutions we have talked about are important for government continuing to ensure that funds flow back to their countries”.
In a related development, the World Bank said that economic growth in sub-Saharan Africa was rebounding in 2017 after registering the worst decline in more than two decades in 2016.
In a bi-annual analysis of the state of African economies, the bank said that the region was showing signs of recovery just as regional growth is projected to reach 2.6 per cent this year.
The World Bank was particularly happy that Nigeria, South Africa and Angola, the continent’s largest economies were “seeing a rebound from the sharp slow down in 2016, but the recovery has been slow due to insufficient adjustment to low commodity prices and policy uncertainty.”

Related Story:  Sterling Bank lauds NDIC examination reports
Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate