The International Monetary Fund (IMF) has released its projection for Nigeria’s growth rate in 2024, estimating it to be at 3.3%. This forecast is underpinned by anticipated improvements in both oil and agriculture sectors, coupled with enhanced security measures.
According to a statement from the IMF headquarters in Washington D.C., Nigeria’s financial sector has shown resilience despite heightened risks. The IMF, following the conclusion of its Article Four consultation with Nigeria, also predicts a decrease in the inflation rate from the current 32% to 24% by the year’s end, supported by ongoing monetary tightening efforts.
The IMF’s Board of Executive Directors emphasized the necessity of consistent, well-coordinated, and transparent reforms to restore macroeconomic stability, alleviate poverty, foster social cohesion, and facilitate faster, inclusive, and resilient growth. They advocated for maintaining a stringent monetary policy stance to curb inflation, ensuring exchange rate flexibility, and bolstering reserves.
Furthermore, the Directors applauded the elimination of distortions in the foreign exchange market and encouraged further enhancements to its functionality through the adoption of a well-structured Forex intervention framework. They highlighted the urgency of revenue mobilization, expenditure realignment, including the phasing out of costly energy subsidies, to create fiscal room for developmental initiatives and reinforce social safety nets while upholding debt sustainability.
Reiterating the importance of revenue generation and expenditure prioritization, the Board emphasized the imperative of reforms aimed at improving the business climate, enhancing security, implementing governance reforms, nurturing human capital, augmenting agricultural productivity, and fortifying climate resilience. These measures are viewed as pivotal in boosting investor confidence, unlocking Nigeria’s growth potential, and diversifying the economy.
Under Article Four of the IMF’s Articles of Agreement, the IMF conducts bilateral discussions with member countries annually, entailing visits by staff teams to gather economic and financial data and engage with officials on economic developments and policies.
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