Nigeria slid into recession in August 2016 and since then the President Muhammadu Buhari-led administration has been everything in its power to stabilize the economy.
The fall in the price of oil affected the country negatively which was one of the reasons subsidy was removed and the price of fuel was increased.
The International Monetary Fund said said Buhari’s recovery plan was a welcomed development for Nigeria
The International Monetary Fund (IMF) which just concluded its Article IV consultation with Nigeria has given Buhari advice on what he must do to save the country from recession.
ZENITHBLOG.com has compiled a list of the things Buhari must do to save Nigeria from recession.
1. Stronger policies
Buhari must deliver stronger policies if he wants to achieve the objectives set by the Economic Recovery and Growth Plan (ERGP).
“Stronger macroeconomic policies are urgently needed to rebuild confidence and foster an economic recovery.”
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2. Reduce budget deficit
“Nigeria should remove currency-trading restrictions and reduce its budget deficit and debt-service costs to ‘sustainable’ levels.”
3. Dump multiple exchange rates
Currently in the country, there are multiple exchange rates which applies for different transactions. Buhari has been asked to remove these multiple exchange rates
“Authorities should remove the remaining restrictions and multiple-currency practices, thus unifying the foreign-exchange market and helping regain investor confidence.”
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4. Revenue-based fiscal consolidation
To reduce the federal government interest-payments-to-revenue ratio to sustainable levels, there is a “need for a front-loaded, revenue-based fiscal consolidation starting in 2017.”
5. Tighter monetary policy
According to the IMF, Nigeria needs tight monetary policy to attract capital flows, improve liquidity and stabilize the currency.
“Easing capital controls should be supported by tighter monetary policy and fiscal consolidation to anchor inflation expectations and to limit the risk of exchange-rate overshooting.”
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6. Raise taxes and eliminate subsidies
Nigeria is said to have a weak tax system which is not helping the country’s fiscal problems.
“They underscored that priority should be given to increasing non-oil revenue, including through raising VAT and excise rates, strengthening compliance, and closing loopholes and exemptions.
“Administering an independent fuel price-setting mechanism to eliminate fuel subsidies, strengthening public financial management, and developing a well-targeted social safety net would also support the adjustment. Directors stressed the need to contain the fiscal deficit of state and local governments, including through improved transparency and monitoring.”
President Muhammadu Buhari is trying to revive Nigeria’s economic growth with a record 7.3 trillion naira ($23 billion) budget this year. The federal government has approved $500 million (N153.55 billion) Eurobond to fund the 2017 budget.
He wants to raise $3.5 billion abroad to plug the deficit. The government issued a $500 million Eurobond on Wednesday as part of the 2016 budget, after raising $1 billion in February.
The man in the ZENITHBLOG.com video below said Nigeria needs to hold mass burial for its leaders.
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