Nigeria’s economy’ll pick up - IMF

DESPITE the declining oil revenue, the International Monetary Fund (IMF) has projected that Nigeria’s economy will pick up this year and later slow down, but will remain strong.


IMF Senior Resident Representative in Nigeria, W. Scott Rogers who made this disclosure while speaking on ‘World Economic and Financial Risks and Implications for Nigeria’, at a risk management forum in Lagos, said non-oil growth could remain strong, depending on progress with structural reforms, export diversification and capital inflows to finance growing import bill, stating that consolidated fiscal balance will turn from surplus to deficit.

He noted that, there were both domestic and external risks to Nigerian economic outlook, noting that, there was need for quick corporate bankruptcy resolution to protect bank balance sheet and reforms to prevent emergence of moral hazard.

“Certain risks would impact on Nigerian economic outlook such as oil prices; interest rates and remittances; weaker fiscal stance arising from spending pressures; weaker capital inflows as CBN conquers inflation and lowers interest rates; bank exposure to oil sector and its dependents and deterioration of security among others,” he said.

On global risks impinging on Nigeria, the IMF topshot said oil prices are high but forecast to decline and risks are mostly on the down side, stating that short -term outlook is good for Nigeria, but will likely worsen if and when recovery takes hold in advanced economies and as interest rates in the country fall.

“A weak recovery for advanced economies as a whole, better for emerging and developing economies. World oil prices are projected to decline, but to remain high by historical standards.; The outlook is still weak and uncertain,” he said.
He further affirmed that global financial stability has improved.