The International Monetary Fund (IMF) has stated that what Nigeria requires to address tremendous shocks holding its economy back is a broad set of policies and reforms.
Director, African Department, IMF, Abebe Aemro Selassie, noted that the fund’s engagement and discussions with Nigeria always was distilled to foreign exchange policy.
“What Nigeria needs is a broad set of policies and reforms to try and address this tremendous shock that has been affecting the economy,” Selassie stated at a press conference on sub-Saharan Africa at the ongoing Spring Meetings of the IMF.
He added that the federal government should also address the problems in the Niger Delta that flare up from time to time.
Sealssie stressed that faced with these exogenous shocks, Nigeria needed to adjust her domestic policy mechanisms in a robust way most importantly her fiscal policy.
According to the director, there is a big gap occasioned by what he described as “traditionally extensive reliance on oil revenues”.
He maintained that for government operations to progress seamlessly, it is not debatable that the government needs alternative revenue policy strategies.
The IMF official averred that exchange rate policies are important tools in this direction and that given the scarcity of reserves, it was necessary that the exchange rates reflect and try to absorb the identified shocks that have resulted from lower export revenue receipts.
Selassie emphasised the urgency of putting in place more flexible policies that would try to absorb the perceived shocks.
“But you know, how quickly you move towards that framework is something which is up to the government”, he added.