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IMF Cautions Nigeria On Huge Spending

By on November 2, 2012

IMF Chief, Christine Lagarde

 

On the backdrop of the shaky  global economic front, the International Monetary Fund(IMF) has advised Nigeria to avoid unnecessary  huge spending that could expose the economy  to crisis.

This was the message of the Fund’s representative Mr Scott Rogers at a press conference on the regional outlook  for Sub—Saharan   Africa economy  on Thursday.

He believed the time has come for Nigeria to be frugal with its oil resources spending and stressed the need for  improved  savings  that can guarantee economic sustainability.

The current inflation rate of  11.3%  according to IMF is still, but in an illustration he made, Mr Rogers was optimistic that the Central Bank of Nigeria’s current  fiscal Policy is  strategic  and commendable believing it  can safeguard the economy if sustained by Government.

On the Excess Crude Account, he urged the Government to avoid excessive withdrawals from the account to spend on projects, programmes, and plans not provided for in the budget.

At a time of Global economic uncertainty, Mr Rogers emphasized the need for Government to articulate its monetary fiscal framework effectively serving as a check on its spending,   focusing more on public investments.

In the face of Global Oil price   volatility, the IMF representative stated that keeping the oil benchmark low was safer, because it can guarantee more savings ,caution excessive spending and curb inflation.

He also told journalists that if Government gives the CBN maximum support in its rigorous but needful fiscal policy, the Central Bank could achieve a single digit inflation, a good outlook for  the Nigerian economy.