The International Monetary Fund (IMF) has challenged Nigeria and other African countries to adjust their fiscal policies in line with the continued drop in crude oil prices
IMF’s Chief of the World Economic Studies Division, Oya Celasun, who gave the charge, at the ongoing IMF/World Bank Spring Meetings in Washington D.C, said fiscal policy has to adjust to new realities of oil price fall, even though it is a difficult adjustment .
She said It requires coherent of policies, that should be achieved in many cases by focusing more on domestic revenue mobilization and to some extent, by rationalizing expenditures, advising Nigeria to also adopt flexible foreign exchange regime to restore values of revenues and the naira.
Celasun disclosed that there was also a need to diversify the economy away from basic commodities of growth, such as crude oil to achieve sustainable growth.
Also , IMF’s Economic Counsellor/ Director of Research, Maurice Obstfield, said the Fund will continue to engage governments from emerging markets, but added that it was hard to be optimistic because of the challenges faced by such economies.
He said that each African country remains different in terms of economic challenges they face, stressing that such problems will require diverse solutions projecting that the world economy will grow at a pace of 3.5 per cent this year, up from 3.1 per cent last year, and 3.8 per cent in 2018.