IMF: Nigeria’s Fiscal Deficit May Widen to 6.2% of GDP in 2022

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*Wants govt to remove fuel subsidies, tackle oil thieves, reform FX 

*Commends CBN on MPR measures to rein inflation

Nume Ekeghe

The International Monetary Fund (IMF) has predicted that Nigeria’s fiscal deficit may widen to 6.2 per cent of its Gross Domestic Product (GDP) in 2022, as a result of continuous fuel subsidy.

The fund noted this in its Staff Concluding Statement of the 2022 Article IV Mission on Nigeria released yesterday.
The institution noted that with the increase in Nigeria’s fiscal deficits and high debt servicing costs, public debts may increase over the medium term.
On the flip side, the IMF commended the Central Bank of Nigeria (CBN) for tightening the Monetary Policy Rate (MPR) and urged it to maintain its stance of further tightening in response to rising inflation.

It also urged the apex bank to allow deposit money banks determine FX buy-sell rates, in collaboration with CBN, which earlier this year, at the launch of RT200 policy,…



Source: Thisday Newspaper