The World Bank says Nigeria should put in place coordinated fiscal and monetary policy actions in the short to medium term.
It’s recommendations include sustaining and fully implementing ongoing reforms and taking complementary actions.
It also seeks more clarity on the financial gains from the fuel subsidy removal ,and its impact on revenue accruing to the federation account.
This recommendation is contained in the World bank’s Nigeria development update report.
The presentation of the World Bank’s Nigeria development update report is themed turning the corner.
The report says government avoided a fiscal cliff through reforms including fuel subsidy removal, exchange rate liberalisation, removal of forex restrictions on 43 items and monetary policy tightening.
It acknowledged inconveniences occasioned by these developments such as higher fuel prices and rising inflation, which have been hard on the poor and vulnerable but advises that the measures be sustained alongside addressing their costs.
The fiscal and monetary authorities subsequently shared their thoughts on the report and efforts being made to address concerns.
The report seeks better clarity on the gains from the fuel subsidy removal as it affects revenue generation and the fiscal authourities say more attention will be paid on the Nigeria National Petroleum Corporation Limited’s remittance to the federation account.
The country is particularly advised to turn the corner by ensuring coordinated fiscal and monetary policy actions in the short to medium term.
The thinking here is that with the continued implementation of macroeconomic stabilization reforms, the country in 2024, can have a more stable and predictable macroeconomic environment.
