IMF Executive directors have welcomed the Nigeria’s policy agenda and suggested the following as utmost solutions to the lingering economic crisis in the country.
– Enhancement of transparency, strengthening governance, improving security, and creating jobs
– The critical need to raise non oil revenues to ensure fiscal sustainability while maintaining infrastructure and social spending.
– Gradual increase in the VAT rate, further improvements in revenue administration, and a broadening of the tax base
IMF, once again, called for a flexible exchange rate system and raised concerns over Nigeria’s inflation objective saying the policy approach of expansionary monetary policy, together with a relatively fixed exchange rate and exchange restrictions had adversely impacted economic activity.
