The International Monetary Fund (IMF) has applauded Nigeria’s response to the slump in global crude oil prices
While responding to a question at the IMF/World Bank Spring meetings this past Sunday, the IMF Managing Director, Christine Lagarde, noted that Nigeria’s strategic response to the global decline in crude oil prices was laudable.
According to Ms Lagarde, Nigeria is one of the seven oil-producing nations in the African region affected by revenue loss whose response to the same has been stellar. Seventy percent of Nigeria’s revenue derives from the sale of crude petroleum products, and since June 2014, the country and other members of OPEC have suffered over 50 percent loss in revenue.
This comes at a time when Nigeria has instituted a slew of belt-tightening measures aimed at reversing the decline in the country’s revenues, including spending cuts and increased taxes on luxury goods. IMF has lauded the measures and added that Nigeria should cut back on subsidies and public spending in order to offset the decline in revenues occasioned by the slump in global crude oil prices.
IMF has lauded Nigeria’s response to falling oil revenues, which includes measures such as higher taxes on luxury goods
Diversifying the economy has also been repeatedly touted as a long-term solution to Nigeria’s vulnerability to crude oil prices swings. This, however, remains to be seen.