Fidelity bank banner Bayelsa State 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: 2,397


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

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
INEC in dilemma over Anambra Senatorial re-run poll...

EFCC docks suspected Internet fraudster

Nigerian Air Force to collaborate with airlines to...

SGF takes on Saraki, Ekweremadu for allegedly disrespecting...

Warren Buffett becomes face of Coke in China...

Suspects make u-turn; deny being given guns by...

INEC begins assessment of political parties in Anambra...

Cult kingpin, 7 others arrested in Anambra; gun,...

Senate to partner PSN to combat drug abuse...

PPA fixes date for Anambra governorship primaries

One quarter of Nigerian teenagers sexually active: Studies...

Sex and masturbation may hamper Ebola eradication efforts...

 

Latest News BREAKING: Croatia crush Argentina 3-0 to reach 2018 World Cup knockout stage The criminals in police uniform Witness to history DSS nabs 2 suspected Islamic State commanders in Abuja 2018 Budget: SERAP recommends ICC prosecution of lawmakers over cutting of critical projects Windstorm, Fire Disaster: Buhari weeps in Bauchi nPDP members to attend APC Convention: Baraje 2018 budget: FG to borrow N1.6tn to fund deficit N282.7m UBA fraud: Absence of witness stalls oil marketer’s trial Pharmacists destroy N452m worth of drugs Projects' probe: ICPC makes U-turn, withdraws charge against NDDC boss NERC grants electricity generation, distribution licences to Ariaria Market

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,344 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (351,735 views) Shameless Genevieve Nnaji exposes breasts in public (280,298 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,147 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,101 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (208,827 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (181,859 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (163,961 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (153,960 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,660 views) Lagos plane crash: Journalist releases victims’ names (143,871 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,695 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,260) Business Verdict (44) Columnists (870) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (505) Features (607) Global Business Monitor (283) International (2,045) Interview (154) Live Commentary (28) Love Matters (124) News (36,375) Opinion (1,004) Pidgin (10) Politics (5,297) Religion (770) Sports (1,553) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Portugal v Spain 2018

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement