The IMF has urged Nigeria to adopt targeted social interventions to combat economic challenges. The discussions between IMF’s Gita Gopinath and Finance Minister Mr. Wale Edun encompassed social support, tax reforms, and increased oil production. Initiatives to enhance investment and improve fiscal transparency were also key topics, aiming to boost Nigeria’s economic prospects.
The International Monetary Fund (IMF) has recognized Nigeria’s economic difficulties and has advised the Federal Government to adopt targeted social interventions. This advice was conveyed by IMF First Deputy Managing Director, Gita Gopinath, during a meeting with Nigeria’s Finance Minister, Mr. Wale Edun, in Abuja.
During the discussions, Gopinath highlighted the importance of addressing Nigeria’s high cost of living through social support expansion. This engagement signals the IMF’s dedication to promoting sustainable economic policies while aligning with Nigeria’s efforts to enhance social investment programs.
Edun detailed Nigeria’s initiatives to boost social investments, including a transition to a biometric and transparent system designed to improve efficiency and accountability. The government is also working on tax reforms and digitalization aimed at bolstering domestic resource mobilization.
Moreover, Nigeria’s crude oil production has improved, rising from 1.2 million to approximately 1.7–1.8 million barrels per day, which has significantly increased national revenue. The minister asserted the vital role of private sector investments, advocating for policy adjustments to enhance renewable energy and the investment environment for solar energy projects.
Edun also discussed reforms in the electricity sector, proposing the introduction of expanded metering to improve operational efficiency. Internationally, the dialogue centered on Nigeria’s role in global financial policy and striving for better credit ratings for African nations.
He emphasized that improving fiscal data transparency could help enhance Nigeria’s credit profile, thereby attracting more investors and reducing borrowing costs.
In conclusion, the IMF has urged Nigeria to implement targeted social interventions to address its economic challenges. With a focus on transparency and efficiency in social investment, tax reforms, and increased crude oil production, the country aims to bolster its economic standing and attract private sector investments. Enhancing fiscal transparency is critical for improving credit ratings and reducing borrowing costs.
Original Source: www.thisdaylive.com
