IMF Raises Alarm on Nigeria’s Economic Challenges, Calls for Urgent Action

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On Sunday, the International Monetary Fund (IMF) depicted a sobering portrayal of Nigeria’s economic status, underscoring the nation’s “difficult external environment” and “wide-ranging domestic challenges.”

In a statement titled “IMF Executive Board Concludes Post Financing Assessment with Nigeria,” the IMF accentuated the scarcity of external financing, stemming from both markets and official sources. This scarcity has been compounded by the escalation of global food prices, attributed to conflict and geopolitical tensions.

It 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.”

Despite the bleak outlook, the IMF acknowledges the Nigerian government’s focus on “restoring macroeconomic stability and creating conditions for sustained, high and inclusive growth” as the right approach.

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