IMF decries high poverty rate, food insecurity in Nigeria
However, the IMF commended Nigeria for taking important steps to stabilise the economy, enhance resilience, and support growth.
The Fund warned that the country's macroeconomic outlook remains highly uncertain, as elevated global risk sentiment and lower oil prices could impact the Nigerian economy.
A team from the IMF, led by Axel Schimmelpfennig, IMF Mission Chief for Nigeria, visited Lagos and Abuja from 2 to 15 April to hold discussions for the 2025 Article IV Consultations with Nigeria.
At the end of the visit, Mr Schimmelpfennig issued a statement saying, 'The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth.
'The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies have been removed, and the functioning of the foreign exchange market has improved.
'However, these gains have yet to benefit all Nigerians, as poverty and food insecurity remain high.
'The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy.
'The reforms implemented since 2023 have placed the Nigerian economy in a stronger position to navigate this external environment.'
Looking ahead, the IMF advised the Federal Government to adjust its macroeconomic policies to further strengthen buffers, reduce inflation, and enhance resilience, while creating enabling conditions for private sector-led growth.
'The authorities communicated to the mission that they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices. A neutral fiscal stance would support monetary policy in bringing down inflation,' the IMF stated.
The IMF further advised that, to safeguard key spending priorities, fiscal savings from the removal of fuel subsidies should be channelled into the budget.
'In particular, adjustments should protect critical, growth-enhancing investments while accelerating and broadening the delivery of cash transfers under the World Bank-supported programme to provide relief to those experiencing food insecurity.
'A tight monetary policy stance is required to firmly guide inflation down. The Monetary Policy Committee's data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.
'Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations,' the IMF said.
The IMF team that visited Nigeria for consultations met with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Agriculture and Food Security, Abubakar Kyari; the Central Bank of Nigeria Governor, Yemi Cardoso; senior government and central bank officials; the Ministry of the Environment; the private sector; academia; labour unions; and civil society.
Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).
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Middle East Eye
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Equatorial Guinea: Selected Economic and Financial Indicators, 2024–26 Estimates Projections 2024 2025 2026 (Annual percentage change, unless otherwise specified) Production, prices, and money Real GDP 0.9 -1.6 0.5 Hydrocarbon GDP1 0.4 -6.4 -2.6 Non-hydrocarbon GDP 1.3 2.3 2.8 GDP deflator 2.5 3.0 1.0 Consumer prices (annual average) 3.4 2.9 2.9 Consumer prices (end of period) 3.4 2.9 3.5 Monetary and exchange rate Broad money 2.6 2.7 2.9 Nominal effective exchange rate (- = depreciation) … … … External sector Exports, f.o.b. -7.1 1.6 -8.7 Hydrocarbon exports -8.4 1.7 -10.2 Non-hydrocarbon exports 2.6 1.8 1.0 Imports, f.o.b. -8.9 2.2 -1.9 Government finance Revenue -14.3 0.7 -5.0 Expenditure -0.7 4.9 -1.3 (Percent of GDP, unless otherwise specified) Government finance Revenue 17.9 17.8 16.7 Hydrocarbon revenue 14.5 14.3 13.0 Non-hydrocarbon revenue 3.4 3.5 3.7 Expenditure 18.5 19.1 18.6 Overall fiscal balance (Commitment basis) -0.6 -1.3 -1.9 Overall fiscal balance (Cash basis) -1.0 -2.0 -2.6 Non-hydrocarbon primary balance2 -11.7 -12.6 -12.3 Non-hydrocarbon primary balance (as percent of non-hydrocarbon GDP) -17.0 -17.4 -16.4 Change in domestic arrears -0.3 -0.7 -0.7 External sector Current account balance (including official transfers; - = deficit) -3.2 -3.3 -4.5 Imputed Foreign Reserves (net), US$billion 0.4 0.4 0.2 Debt Total public debt 36.4 37.0 38.4 Domestic debt 28.7 28.0 27.9 External debt 7.8 9.0 10.5 External debt service-to-exports ratio (percent) 6.2 5.7 6.2 External debt service/government revenue (percent) 7.9 7.4 7.7 Memorandum items Oil price (U.S. dollars a barrel)3 79.9 67.7 63.3 Nominal GDP (billions of CFA francs) 7,740 7,846 7,959 Nominal GDP (millions of US dollars) 12,769 12,881 13,138 Hydrocarbon GDP (billions of CFA francs) 2,401 2,193 1,971 Non-hydrocarbon GDP (billions of CFA francs) 5,340 5,653 5,987 Government deposits (in percent of GDP) 17.7 17.5 17.2 Oil volume (crude and condensado, millions of barrels) 29.1 26.8 25.1 Gas volume4 (millions of bbls oil equivalent) 51.8 49.2 49.5 Total Hydrocarbon Volume (in millions of barrels of oil equivalent) 81.0 76.0 74.7 Exchange rate (average; CFA francs/U.S. dollar) 606.2 … … Sources: Data provided by the Equatoguinean authorities; and staff estimates and projections. 1 Including oil, LNG, LPG, butane, propane, and methanol. 2 Excluding hydrocarbon revenues, hydrocarbon expenditures, and interest earned and paid. 3 The reference price for crude oil is the Brent. 4 Includes LNG, propane, butane and methanol. [1] Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. [2] Under the IMF's Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the page. [3] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: Distributed by APO Group on behalf of International Monetary Fund (IMF).
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- Zawya
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