The International Monetary Fund (IMF), one of Nigeria’s regular creditors, has cautioned Nigeria against frivolous spending, especially in her fiscal policies, given the uncertainty that still pervades the global economic scene.
The IMF’s Senior Resident Representative in Nigeria, Mr. Scott Rogers, who presented the World Economic Outlook, told journalists, in Abuja that Nigeria must take advantage of the current growth to strengthen her fiscal position by saving for the future, as there is no assurance of early global economic recovery.
In his words: “The global economic outlook remains uncertain. The global context has continued to witness slowing growth, mostly marked in the advanced economies… “If the world economy remains weak, it will continue to affect countries of the world especially those with strong ties with the US and the Euro area which could actually go into recession. Export growth in Sub-Sahara Africa has remained weak due to the weakening economies of the advanced countries”
According to Rogers, the Nigerian economy stands the risk of being faced with lower crude oil prices due to weak global economy and that as such a high oil price benchmark, as being proposed by the National Assembly could hurt the economy. Therefore, the challenges, he said, is for the nation to generate fiscal surplus while oil prices are high and use it to build the nation’s reserves, rather than drawing it down from the Excess crude Account to be spent. “Stop spending what is meant to be saved. Make the oil price rule effective,” he advised.