The International Monetary Fund (IMF) has commended Nigeria’s fiscal reforms, and urged the country adopt smarter spending and stronger tax systems.
The Division Chief, Fiscal Affairs Department IMF, Davide Furceri, made the statement during a news conference on fiscal monitor, in Washington on Wednesday on the sidelines of the Annual Meetings of the IMF/WorldBank Group.
Furceri said that Nigeria’s ongoing fiscal and structural reforms were neutral and well aligned with monetary policies designed to curb inflation and stabilise the economy.
He said that the fund’s latest assessment of fiscal policy across developing economies, especially the Nigeria’s policy direction, was consistent with efforts to strike a balance between revenue mobilisation and efficient expenditure management.
“Currently, what we are projecting for Nigeria is a neutral fiscal stance, which we believe is consistent with monetary policies aimed at reducing inflation,” he said.
He advised Nigeria to focus on revenue and expenditure sides of public finance.
“Nigeria has made significant progress in recent years. Several laws have been passed to streamline the tax code, reduce tax expenditures and ease the compliance burden for businesses and coerce.
“These are steps in the right direction,” he said.
Furceri called for greater efficiency in public spending to ensure better outcomes for citizens.
He said that optimising on how resources are allocated and spent could deliver substantial economic and social gains.
“In addition, it is important to increase social spending, particularly to support vulnerable households and ensure inclusive growth,” he said.
He urged Nigeria to continues to implement key fiscal and monetary reforms under its medium-term economic framework, fiscal discipline, improved revenue generation and enhanced transparency in public finance management.
He said that IMF’s endorsement reflected growing confidence in Nigeria’s reform trajectory, even as the government pushes for policies aimed at boosting growth, reducing inequality and sustaining macroeconomic stability.
Freedomonline reports the fiscal monitor explores how governments can improve economic growth prospects by enhancing the efficiency and composition of public spending.
