FRI MAY 10 2024-theGBJournal| The International Monetary Fund (IMF) Executive Directors say they welcomed the bold reforms implemented by the President Bola Tinubu administration, and commended the authorities’ focus on revenue mobilization, governance, social safety nets, and upgrading policy frameworks in the face of Nigeria’s significant economic and social challenges.
Similarly, the Directors commended the authorities’ actions to rein in inflation and restore market confidence.
The IMF also stressed the importance of keeping a tight monetary policy stance to put inflation on a downward path, maintaining exchange rate flexibility, and building reserves.
The commendation is part of the international lenders Executive Board Assessment on Nigeria contained in its Article 1V Consultation report.
Directors also welcomed the removal of foreign exchange market distortions and encouraged the federal government to continue improving the functioning of the FX market, including by adopting a well‑designed FX intervention framework.
Some Directors also noted that carefully and sequentially phasing out capital flow management measures when warranted would be important.
The Federal Government’s intentions to shift to an inflation targeting regime also received commendation.
One of the key concerns raised is the safety of the Central Bank of Nigeria’s (CBN) autonomy, calling for caution regarding amendments to the Central Bank of Nigeria (CBN) Act that might weaken the apex bank’s autonomy.
Meanwhile, Directors highlighted the importance of reforms to enhance the business environment, improve security, implement key governance measures, develop human capital, boost agricultural productivity, and build climate resilience.
These reforms they say, are crucial to boost investor confidence, unlock Nigeria’s growth potential and diversify the economy, address food insecurity, and underpin sustainable job creation.
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