IMF and Nigeria’s economy | Independent Newspapers Limited
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IMF and Nigeria’s economy

Posted: Apr 9, 2015 at 3:19 am   /   by   /   comments (0)

By Funmi Falobi / Snr. Reporter, Lagos


With the rebasing of Nigeria’s economy in 2014, it became the largest in Africa and one of the emerging market economies in the world. However, the International Monetary Fund (IMF) in its World Economic Outlook(WEO) released on Tuesday this week, projected the country’s economy to grow downwardly by 4.8 per cent in 2015.

Okonjo-Iweala-at-the-receiving-end-116x200The IMF in its data on Nigeria said that the national economy, which in 2013 grew by 5.4 per cent rose to 6.1 in 2014 and will decline to 4.8 per cent in 2015 and move up to 5.2 per cent in 2016.

The report said that developments since the release of the October WEO have conflicting implications for the growth forecasts. “On the upside, the decline in oil prices driven by supply factors, which, as noted, are expected to reverse only gradually and partially, will boost global growth over the next two years or so by lifting purchasing power and private demand in oil importers. The impact is forecast to be stronger in advanced economy oil importers, where the pass-through to end-user price is expected to be higher in emerging market and developing oil importers.

Nigeria is said to enjoy strong economy and growth in 2014. However, despite the rebasing, the economy has not impacted positively in the lives of the citizens as people are impoverished, unemployment is still on the high, while the devaluation of Naira is having its toll on the economy and the citizens.

Reacting, Mr. Aruna Kebira, a stockbroker with Gruene Capital Limited, believes that with the change in governance in the country, the nation economy might receive growth that will impact positively on the ordinary citizens.

“There will be several projections and it can be higher. However, Nigeria now has a change in governance and it is hoped that the new government will formulate policies that will grow the economy.” he said.

On the implication of the global economy on Nigeria, Kebira said, “If other economies are performing to expectation, there will be a flow of funds to Nigeria to boost our economy. Once others are performing it will rob off on our economy.”

Indeed while clarifying issues on the state of the nation in 2014, Dr. Ngozi Okonjo-lweala, Minister of Finance and Co-ordinating Minister for the Economy had noted that the outlook for the country’s economy remained good, despite the global economic uncertainty. But the IMF had in January said the Nigerian economy would record a lower growth of five per cent in 2015.

However, with the change of governance in the country, it is expected that the new government would turn the economy round and impact positively on the citizens.