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HomeAfricaIMF tasks Nigeria on oil revenue management

IMF tasks Nigeria on oil revenue management

The International Monetary Fund (IMF) has called on the Nigerian government to improve its public financial management and develop a stronger framework for managing the nation’s oil wealth.

The private Guardian newspaper Wednesday quoted the IMF as also calling on the government to take step to reduce rising inflation, caused by the recent hike in petrol prices and the unrest in the Northern part of the country.

“Growth is projected to remain robust in 2012 and inflation is expected to increase temporarily as a result of the increase in gasoline prices. The main downside risks to the short-term outlook are a further deterioration in the global environment and an exacerbation of current violence in Northern Nigeria,” the paper quoted the IMF as saying in a statement.

The projection of a robust growth in 2012 is predicated on effective management.

More broadly, the IMF agreed that a monetary framework focused on a clear inflation objective should help anchor inflation expectations and support disinflation.

According to the Washington-based institution, economic growth remained strong in Nigeria, with non-oil real Gross Domestic Product (GDP) estimated to have grown at 8.3 per cent in 2011 and overall real GDP at about 6.7 per cent.

Inflation slightly declined to 10.3 percent in December 2011 (year-on-year) from 11.7 per cent a year earlier, in response to monetary tightening by the Central Bank of Nigeria (CBN) and moderation of food prices.

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