## Nigeria: Staff Report for the 2002 Article IV Consultation

_IMF Staff Country Reports, January 3, 2003_

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**Canonical URL:** [Nigeria: Staff Report for the 2002 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/30/nigeria-staff-report-for-the-2002-article-iv-consultation-16260)

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## Bibliographic details
- Published: January 3, 2003
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451828900.002

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### Major findings — macroeconomic imbalances
- Major macroeconomic imbalances had emerged as a result of sharp increases in government spending.
- The overall fiscal balance deteriorated sharply in 2001.
- The external accounts worsened.
- Inflation accelerated.
- Lax financial policies have led to a sharp fall in international reserves.

### Fiscal stance and public spending (2001–2002)
- The overall stance of fiscal policy remains highly expansionary in 2002, notwithstanding efforts by the authorities to contain capital spending.
- Sharp increases in government spending are identified as a principal driver of the emerging imbalances.

### Price-level and exchange market risks
- The report expresses concern at the risks of a further acceleration of inflation.
- The report expresses concern at continuing instability in the exchange market.

### Policy concerns and implications
- Continued expansionary fiscal policy combined with lax financial policies increase risks to macroeconomic stability.
- Worsening external accounts and falling international reserves highlight vulnerability to external shocks.
- Containing capital spending alone is insufficient given the overall expansionary fiscal stance.

*Nigeria: Staff Report for the 2002 Article IV Consultation, January 3, 2003.*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/nigeria-staff-report-for-the-2002-article-iv-consultation-16260_