8 years ago
Wednesday, October 9, 2013
IMF - Despite Insecurity, Crude Theft, Nigeria's Economy Remains Strong
The International Monetary Fund (IMF) has given a nod to Nigeria's economy despite the insecurity in the northern part of Nigeria and crude oil theft, which has negatively affected the nation's revenue base, the body said Nigeria's economy is still strong.
The IMF's positive rating came only a day after the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, restated that Nigeria was not broke.
The minister's defence was amid criticisms and claims that the country was broke. The IMF, therefore, projected a real Gross Domestic Product (GDP) growth of 7.4 per cent for Nigeria in 2014, which is higher than its 6.2 per cent projection for the economy last year.
The IMF explained as follows:
"In Nigeria, still high oil prices underpinned strong growth, notwithstanding temporary downdrafts from security problems in the north and oil theft," it said.
Also, the IMF noted that growth in sub-Saharan Africa was robust between 2012 and 2013 and was expected to accelerate somewhat in 2014, reflecting strong domestic demand in most of the region.
It added: "Nevertheless, spillover from sluggish external demand, reversal of capital flows, and declines in commodity prices are contributing to somewhat weaker growth prospects in many countries relative to the April 2013 WEO. Policies should aim to rebuild room for policy manoeuvring where it has been eroded, and more broadly to mobilise revenue to address social and investment needs."
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