Nigeria’s Oil, Agriculture Outputs to Improve in 2024—IMF

Nigeria’s Oil, Agriculture Outputs to Improve in 2024—IMF

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By Dipo Olowookere

The International Monetary Fund (IMF) has said oil and agriculture outputs in Nigeria should improve in 2024 if the government tackles insecurity in the country.

The several attacks on farmers in the northern part of the country by terrorists have disrupted the food supply, aggravating inflation, which stood at 33.20 per cent in March 2024.

The inflation numbers for April is expected to be released by the National Bureau of Statistics (NBS) on Wednesday, May 15, 2024.

In a statement to reveal the conclusion of the 2024 Article IV Consultation with Nigeria by its executive board, the global lender said the improvement in food and oil production would trigger the nation’s Gross Domestic Product (GDP) to rise to 3.3 per cent this year from 2.9 per cent last year.

“Growth is projected at 3.3 per cent for 2024 as both oil and agriculture outputs are expected to improve with better security,” a part of the note made available to Business Post on Thursday stated.

The IMF directors praised the actions of the Nigerian government to “rein in inflation and restore market confidence,” stressing the “importance of keeping a tight monetary policy stance to put inflation on a downward path.”

They also lauded the “ambitious reform” of the administration of President Bola Tinubu to “restore macroeconomic stability and support inclusive growth.”

The directors said the decision to remove fuel subsidies and unify the exchange rate regimes would lead to “revenue mobilisation,” which they pointed out the government needs at this period.

“Over the last decade, limited reforms, security challenges, weak growth and now high inflation have worsened poverty and food insecurity,” a part of the statement said.

While they noted that near-term risks are tilted to the downside, the directors emphasised that, “Determined and well-sequenced implementation of the authorities’ policy intentions would pave the way for faster, more inclusive and resilient growth.”

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