TheCable

The International Monetary Fund (IMF) has suggested ways that Nigeria can boost its revenue outside crude oil to reduce the country’s reliance on lending.

Speaking at her maiden press conference for the ongoing annual meetings of the IMF and World Bank Group, Christine Lagarde, IMF managing director, recommended a tight monetary policy.

“I would certainly start with a tight monetary policy, higher non‑oil revenue mobilization,” the IMF boss said.

“I remind you that domestic revenue mobilization is 5 percent of GDP in Nigeria, and that is just way too low, relative to where Nigeria should be in order to address the issues of health, education, proper social spending on the people.

“That would certainly be a very strong recommendation that I would give. And structural reforms that would probably include really making sure that the refineries and the oil equipment that is available in Nigeria works well and works for the benefit of Nigeria.”

Lagarde said a trade war or currency war between the US and China would affect both participants and a lot of innocent bystanders.

However, she said the spillover effect on Nigeria would be difficult because there will be spillovers from various factors.