Nigeria: Selected Issues

IMF Staff Country Reports, April 1, 2019

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Nigeria: Selected Issues

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Bibliographic details

• Published: April 1, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781498306225.002

Overview

• This Selected Issues paper examines concrete steps to improve governance of state-owned enterprises (SOE) and of the oil sector, given their importance to fiscal transparency and sustainability.
• Emphasis on reducing leakages in the petroleum sector because of Nigeria’s current fiscal and external dependence on oil revenue.
• The paper provides an overview of developments, recent reforms, and challenges, and outlines policy recommendations for stronger governance and corruption prevention, detection, and resolution.
• Anti-money laundering and combating the financing of terrorism (AML/CFT) measures are highlighted as instruments useful beyond the petroleum sector.
• Strengthening transparency is necessary to ensure Nigeria receives maximum benefits from the oil and gas sector.
• The Nigerian authorities must accelerate anti-corruption efforts to maintain momentum against both entrenched challenges and evolving threats.

Key findings and analyses

• Governance weaknesses in SOEs and the oil sector materially affect fiscal transparency and fiscal sustainability.
• Petroleum-sector leakages are macroeconomically critical due to Nigeria’s fiscal and external dependence on oil revenue.
• AML/CFT frameworks and anti-corruption measures have cross-cutting relevance beyond petroleum, supporting prevention, detection, and resolution of corruption and illicit financial flows.

Policy recommendations

• Strengthen governance and transparency in SOEs and the oil and gas sector.
• Implement anti-corruption measures to address both entrenched challenges and evolving threats.
• Enhance AML/CFT frameworks as part of broader anti-corruption and transparency efforts that extend beyond the petroleum sector.

Implementation requirements

• Achieving critical improvements will require a combination of:
  • Legislative action,
  • Institutional reform,
  • Additional resources.

Subjects and keywords

• Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Corruption, Crime, Education, Export diversification, External debt, Fuel prices, International trade
• Keywords: AMCON bill, AMCON disclosure, Anti-money laundering and combating the financing of terrorism (AML/CFT), collection power, Corruption, cost, CR, debt, Export diversification, firm, firm age, firm level, firm performance, firm size, Global, ISCR, MTDS debt mix objective

Content in this bundle

• Nigeria: Selected Issues; IMF Country Report No. 19/93; March 13, 2019
  • Nigeria: Selected Issues; IMF Country Report No. 19/93; March 13, 2019 (Markdown version)
  • Nigeria: Selected Issues; IMF Country Report No. 19/93; March 13, 2019 (PDF)