A team from the International Monetary Fund, (IMF), has said that the Nigerian economy was “gradually” recovering from the negative effects of the Covid-19 pandemic.
The IMF disclosed this on Thursday, in its end-of-mission statement, issued from its Washington, DC, headquarters, USA, on preliminary findings following virtual meetings of its teams with the Nigerian authorities from June 1-8.
The IMF team, led by Ms. Jesmin Rahman, discussed recent economic and financial developments and outlook and noted that “real gross domestic product (GDP) is recovering but unemployment and inflation remain high”.
The report says the nascent recovery in economic activity is expected to take hold and spread across sectors, with GDP growth expected to reach 2.5% in 2021. However, its findings also indicated that the resurgence of fuel subsidies was of concern, especially in the context of weak revenue mobilisation.
The IMF team praised the measures taken by the Nigerian authorities to contain the transmission of Covid-19 in the country.
In terms of monetary policy, to strengthen the monetary targeting regime, the mission recommended integrating the interbank and debt markets and using short-term central bank or government bonds as the main tool for managing debt. liquidity, instead of cash reserve requirements.
