Nigeria: Post-Financing Assessment Discussions-Press Release; and Staff Report
IMF Staff Country Reports, February 9, 2024
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- Nigeria: Post-Financing Assessment Discussions-Press Release; and Staff Report
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Bibliographic details
- Published: February 9, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400267956.002
Key reforms and policy actions
- President Tinubu has moved ahead with important structural reforms: removing fuel subsidies and unifying the various official foreign exchange windows.
- The government’s focus on revenue mobilization and digitalization would improve public service delivery and safeguard fiscal sustainability.
Growth, outlook, and projections
- Growth is projected at 2.9 percent for 2023, and 3 percent in 2024, as hydrocarbon performance revives, including from better control of theft.
- If the authorities succeed in developing and implementing a comprehensive reform agenda, the medium-term outlook would be much improved.
IMF staff assessment and repayment capacity
- The IMF staff assesses that Nigeria’s capacity to repay the Fund is adequate under the baseline.
- The authorities’ policy intentions are well placed to address risks of a downside scenario where difficult trade-offs may arise between urgent humanitarian needs and debt service, including to the Fund.
Downside scenario and required response
- In circumstances where downside risks materialize, aggressive monetary tightening and fiscal adjustment combined with support from development partners would be needed to restore macroeconomic stability.
Content in this bundle
- 1ngaea2024001