Nigeria facing worsening economic crisis – IMF

Joseph Emeribe 2024-02-12 0

The International Monetary Fund said Nigeria is facing a worsening economic crisis.

The global lender stated this in a new report titled, “IMF Executive Board Concludes Post Financing Assessment with Nigeria.”

According to the IMF, stalled per-capita growth, poverty, and high food insecurity have exacerbated the ongoing cost-of-living crisis in Nigeria.

The report came amid rising inflation, an exchange crisis, weak economic growth, and business shutdowns.

According to the report, low revenue collection has hampered the provision of services and public investment.

It noted that headline inflation reached 27 percent year-on-year in October (food inflation was 32 percent), reflecting the effects of fuel subsidy removal, exchange rate depreciation, and poor agricultural production in the country.

The report partly reads, “Nigeria faces a difficult external environment and wide-ranging domestic challenges. External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation.

“Per-capita growth in Nigeria has stalled; poverty and food insecurity are high, exacerbating the cost-of-living crisis. Low reserves and very limited fiscal space constrain the authorities’ option space.

“Against this backdrop, the authorities’ focus on restoring macroeconomic stability and creating conditions for sustained, high, and inclusive growth is appropriate.”

The report noted that on January 12, 2024, the Executive Board of the International Monetary Fund concluded the Post Financing Assessment and endorsed the Staff Appraisal on a lapse-of-time basis.