"Nigeria’s economic future looks challenging

" Nigeria's economic future looks challenging - IMF \r\n\r\n \r\n\r\nThe\u00a0 International Monetary Fund \u00a0has reaffirmed its growth projection of 3.3% for Nigeria's economy in 2024, compared to 2.9% last year. This forecast reflects improvements in the services and trade sectors.\r\n\r\n \r\n \r\n \r\n \r\n\r\nHowever, the\u00a0 IMF \u00a0noted that the growth outlook remains challenging for Africa's most populous nation and leading oil producer. In March,\u00a0 food price inflation \u00a0reached 40%, prompting concerns about food security.\r\n\r\n \r\n \r\n\r\nAccording to the IMF mission chief for Nigeria, Axel Schimmelpfenning\u00a0 \"If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge.\" \r\n\r\n \r\n \r\n\r\nThe Fund projected that fuel subsidies could be up to 3% of GDP this year due to the disparity between pump prices and their dollar cost, according to Schimmelpfennig. He further stated that officials are dedicated to gradually phasing out these subsidies within the next one or two years.\r\n \r\n\r\n \"The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards,\" \u00a0Schimmelpfenning said.\r\n\r\n \r\n \r\n\r\n \"We think a lot has happened. We also have to recognise that the problems built up over many years were quite severe. We can't expect that everything is going to be resolved overnight, \" he added.\r\n\r\n \r\n \r\n\r\nGlobal rating agencies have upgraded Nigeria's economic outlook as a result of reform efforts. Fitch, the latest agency to do so, has revised Nigeria's outlook from stable to positive.\r\n\r\n \r\n \r\n\r\nSchimmelpfenning noted that scaling up a cash transfer program and increasing government revenues to enhance service provision to citizens are key priorities.\r\n \r\n\r\nIn terms of monetary policy, the IMF commended the recent interest rate hikes by the Central Bank of Nigeria (CBN) to address rising inflation, calling for a data-driven approach for further rate adjustments.\r\n\r\n \r\n \r\n\r\nThe IMF encouraged the CBN to boost its foreign exchange reserves and suggested a transparent and balanced framework for forex interventions.\r\n\r\n \r\n \r\n\r\nWhile the Nigerian currency was\u00a0 reported as the best-performing currency in the world, \u00a0earlier in April, in February it was the worst-performing currency in the world, trading as high as N1,900 per US$.\r\n\r\n \r\n \r\n\r\nHowever, the\u00a0 International Monetary Fund disclosed in April \u00a0that this could be a pipe dream if Nigeria does not take on a fundamental approach to rejuvenating its economy. The IMF warned that the country\u2019s economy could be at risk if it simply fails to produce.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n "

"Nigeria’s economic future looks challenging

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