The Nigerian government’s first priority should be to eliminate food insecurity, according to the International Monetary Fund (IMF).
After the IMF Staff 2024 Article IV Mission to Nigeria concluded on Tuesday in Abuja, this claim was made in the IMF’s End-of-Mission statement.
The statement claims that low growth, insufficient revenue collection, rising inflation, and persistent external imbalances were the difficult economic conditions the Nigerian administration inherited.
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“Addressing food insecurity is the immediate priority.
”The recent approval of a well-targeted and effective social protection system is an important step toward addressing food insecurity in Nigeria and implementation will be crucial,” it said.
The Monetary Policy Committee’s (MPC) decision to tighten monetary policy was also supported by the IMF, which noted that doing so might reduce inflationary pressures and stabilise the Naira.
As part of the 2024 Article IV Consultations with Nigeria, talks took place in Lagos and Abuja from February 12 to February 23, 2024, under the direction of Axel Schimmelpfennig, IMF mission chief for Nigeria.
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, and Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), were two of the important participants in these talks. Senior government officials, representatives from subnational organisations, the private sector, the Ministries of Agriculture and Environment, and Civil Society Organisations also participated in the consultations.
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The statement read in part, “Nigeria’s economic outlook is challenging. Economic growth strengthened in the fourth quarter, with Gross Domestic Product (GDP) growth reaching 2.8 per cent in 2023. This falls slightly short of population growth dynamics.
”Improved oil production and an expected better harvest in the second half of the year are positive for 2024 GDP growth, which is projected to reach 3.2 per cent, although high inflation, naira weakness, and policy tightening will provide headwinds.
“With about eight percent of Nigerians deemed food insecure, addressing rising food insecurity is the immediate policy priority. In this regard, staff welcomed the authorities’ approval of an effective and well-targeted social protection system.
“The team also welcomed the government’s release of grains, seeds, and fertilizer, as well as Nigeria’s introduction of dry-season farming.”
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