The International Monetary Fund (IMF) states that Nigerians are getting poorer. This is despite the several economic reforms embarked upon by the Muhammadu Buhari administration.
In a report seen by Reuters on Wednesday, February 28, 2019, the IMF says more economic reforms are urgently needed in the coutry.
IMF expects the Nigerian government to “muddle through” in the medium term. Although any progress made within this period could also be threatened if the 2019 elections drain political resources.
Since emerging from recession in the second quarter of 2017, officials of the Nigerian government have repeatedly stated that the economy is back on the right track.
According to Reuters, "critics say much of the recovery comes from a return to oil dependence after a rise in global oil prices and a rebound in crude production - more the result of militants in the Niger Delta halting attacks on oil facilities than of economic policy under President Buhari’s administration."
The IMF in its reports stated that despite the improved outlook for growth, the situation is still challenging.
“Comprehensive and coherent” economic policies “remain urgent and must not be delayed by approaching elections and recovering oil prices,” it said in its annual Article IV review of Nigeria’s economy.
“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita,” the IMF said.
The report also identified risks to the growth of the Nigerian economy which include additional delays to implementing key policies and strategic reforms ahead of 2019 elections, security issues, and oil prices.
“Further delays in policy action -- including because of pre-election pressures -- can only make the inevitable adjustment more difficult and costlier,” the report said.
