The International Monetary Fund (IMF) has applauded the set of measures introduced by the Central Bank of Nigeria, CBN, to mitigate the effects of the dwindling oil revenues, describing it as a move in the right direction.
The IMF chief mission for Nigeria, Gene Leon, who stated this in reaction to Nigeria’s fiscal and monetary response to the fall in global oil prices, said: “In a combination of actions, most recently the communiqué after the Central Bank of Nigeria’s monetary policy committee meeting of November 24-25, the authorities have announced a set of policies aimed at mitigating the impact of the recent significant fall in global oil prices on the economy.
“These include: adjusting the exchange rate, resubmitting the medium term expenditure framework to the national assembly with proposed tax and expenditure measures to achieve the deficit target consistent with a lower budget oil price, and tightening monetary policy. “
“We are supportive of and welcome these actions, which we view as complementary and moving in the right direction.
“Of course, the global situation remains fluid and the key issue is being ready to manage downside risks and for the authorities to be prepared, based on assessments of credible scenarios, to consider additional measures, as necessary,” he pointed out.
The Nigerian economy relies majorly on crude oil sale as it is believes in some quarters to contribute over 80 per cent of government’s revenue.
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