IMF approves Nigeria Economy Recovery Growth Plan

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[U.S]–The International Monetary Fund (IMF) on Wednesday endorsed the Economic Recovery and  Growth Plan (ERGP) 2017-2020, launched recently by the federal government.

The fund’s Director, Fiscal Affairs Department, Mr. Vitor Gaspar, conveyed its position on the plan while responding to a question during a media briefing on the IMF Fiscal Monitor press conference at the ongoing IMF/World Bank Spring meetings in Washington DC.

The IMF official while applauding the plan as “how fiscal policy should be thought in developing countries,”  said he had the privilege of visiting Nigeria some months ago and was very happy to learn that fiscal policies in general and tax policy in particular were part of the strategy for development in Nigeria.

Also, IMF’s Assistant Director/Head, Fiscal Policy and Surveillance, Catherine Pattillo, welcomed the country’s ERGP, saying its focus on diversification and attention to some of the problems facing the economy were steps in the right direction.

According to Pattillo: “We very much welcome the ERGP. As you are aware, Nigeria went into recession last year, there have been forecasted recovery, but still very fragile this year and the need to address the fiscal situation is urgent. Our recommendation is for the continued fiscal consolidation.

“One striking statistics I think is the fact that over the past years, the ratio of interest payment to tax revenue has doubled to 66 per cent in Nigeria. So, two-thirds of all tax revenue is going into interest payment, illustrating the need to raise tax revenue that would allow the government to implement the social and growth-friendly policies that are part of the objectives of the ERGP.”

A fortnight ago, THE PAGE reported that President Muhammadu Buhari launched the ERGP 2017-2020.

The Medium-Term plan has among its broad strategic objectives, the restoration of sustainable, accelerated and inclusive growth and development; investing in the people and building a globally competitive economy.




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