THE International Monetary Fund (IMF) has urged the President
Goodluck Jonathan-led administration to remove fuel subsidy completely, to
ensure fiscal adjustment.
Goodluck Jonathan-led administration to remove fuel subsidy completely, to
ensure fiscal adjustment.
IMF’s Senior Resident
Representative/Mission Chief, Williams Scott Rogers, speaking with the media on
Thursday, also insisted that Nigeria requires public sector reforms, stressing
that it was necessary for planned savings in recurrent spending.
Representative/Mission Chief, Williams Scott Rogers, speaking with the media on
Thursday, also insisted that Nigeria requires public sector reforms, stressing
that it was necessary for planned savings in recurrent spending.
He also recommended that the
Federal Government should mobilise non-oil revenues and strengthen oil-price
rule and oil savings mechanism, while pushing for the maintenance of tight
monetary policy.
Federal Government should mobilise non-oil revenues and strengthen oil-price
rule and oil savings mechanism, while pushing for the maintenance of tight
monetary policy.
Commenting on the Nigerian
banking sector, Rogers gave a pass mark, disclosing that it had improved
considerably, as credit to the private sector improved under fully capitalised
banks.
banking sector, Rogers gave a pass mark, disclosing that it had improved
considerably, as credit to the private sector improved under fully capitalised
banks.
Notwithstanding the
improvement, the IMF Country Representative advised that more work on
consolidated and cross-border supervision should be encouraged, stressing that
there was an urgent need for structural reforms to enhance productivity and
global competitiveness.
improvement, the IMF Country Representative advised that more work on
consolidated and cross-border supervision should be encouraged, stressing that
there was an urgent need for structural reforms to enhance productivity and
global competitiveness.
“To this extent, power reform
is a quick win for growth and competitiveness,” he said, submitting that trade
protection for “infant-industries” should be strictly time-bound, while focus
should be on measures to improve competitiveness.
is a quick win for growth and competitiveness,” he said, submitting that trade
protection for “infant-industries” should be strictly time-bound, while focus
should be on measures to improve competitiveness.
According to Rogers, export
diversification was key to long-term growth and improvement in macro-economic
statistics, especially in national income accounts.
diversification was key to long-term growth and improvement in macro-economic
statistics, especially in national income accounts.
On the declining oil price in
the international market, Rogers called for caution on the part of the Federal
Government.
the international market, Rogers called for caution on the part of the Federal
Government.
He disclosed that although
international reserves had been rebuilt and now stand at just over US$50
billion, a decline in international oil prices to US$97 per barrel (annual
average) can erode Excess Crude Account (ECA) balances.
international reserves had been rebuilt and now stand at just over US$50
billion, a decline in international oil prices to US$97 per barrel (annual
average) can erode Excess Crude Account (ECA) balances.
“A decline in international oil
prices to $97 per barrel (annual average) would begin to erode ECA balances. A
fall to $80 – $85 would wipe out ECA balances within a year,” it warned.
prices to $97 per barrel (annual average) would begin to erode ECA balances. A
fall to $80 – $85 would wipe out ECA balances within a year,” it warned.
Source: Tribune
