International Monetary Fund (IMF) has welcomed the structural reforms currently being implementation by the Federal Government, declaring that the Nigerian economy is exiting recession as a result of these measures.
The IMF reached this conclusion following its executive directors consultative meeting with key members of the government’s economic team including finance minister, Kemi Adeosun; budget and planning minister, Udoma Udo Udoma, and governor of Central Bank of Nigeria (CBN), Godwin Emefiele, heads of key FGN agencies and Enabling Business Environment Secretariat (EBES) of the PEBEC.
The IMF mission also held strategic discussions with members of the National Assembly members, representatives of financial institutions, private sector, development partners, and civil society.
According to the IMF report, the ease of doing business efforts of this administration have been impactful, as the report indicates that:
Reforms initiated under the authorities’ Economic Recovery and Growth Plan (ERGP) are welcome, notably the start of convergence in foreign exchange windows, some improvements in tax administration, and significant strides in improving the business environment and anti-corruption efforts.
Containing vulnerabilities and achieving high per capita growth rates require urgent implementation of comprehensive policies, which must not be delayed by rising oil prices and approaching elections:
Promoting a growth-friendly fiscal policy centred on stronger efforts to increase nonoil revenue mobilisation, prioritised capital spending, sound debt management, and a well-targeted and scaled-up social safety net;
Keeping monetary policy tight to contain inflation, based on transparent monetary policy tools, and discontinuation of quasi-fiscal activities;
Removing distortions in the foreign exchange market, which should be unified and contribute to strengthening reserve buffers;
Enhancing banking sector resilience through a proper assessment of asset quality, strengthened capital buffers, and phasing out regulatory forbearance;
Implementing structural reforms by building on recent successes to improve the business environment, accelerating the power sector reform, strengthening governance, and updating the financial inclusion and gender strategies.
The report validates efforts made by present administration led by President Muhammadu Buhari to improve thee business environment in Nigeria and achieve its objective of making it a leading investment destination on the African continent.
It will be recalled that the PEBEC was inaugurated in July 2016 and is chaired by Vice President Yemi Osinbajo. By collaborating across MDAs and across governments, strategic reforms were achieved in 2017 using a 60-day National Action Plan underpinned by an Executive Order on efficiency and transparency of the civil and public service, the first of this administration (EO1), which led to the 24-place movement in the 2018 Doing Business Rankings released in October 2017. The WB DB report placed Nigeria amongst the top ten reformers in the world.
Since then, the PEBEC has since undertaken the second NAP and is currently in its third NAP, which focuses on further reforms across 9 indicator areas and ends on April 5.
The administration has however noted that achieving important economic milestones require focus, discipline and unwavering commitment to Making Business Work in Nigeria.
