THE International Monetary Fund, IMF, team led by Amine Mati, senior resident representative and mission chief for Nigeria, has said the Central Bank of Nigeria, CBN, may be in trouble.
The team, which concluded their report on the country recently stated that “over-optimistic revenue projections – leading to higher financing needs than initially envisaged – resulted to overreliance on expensive borrowing from the CBN to finance the fiscal deficit.
The IMF report is coming in the wake of the presentation of 2020 budget proposal by President Muhammadu Buhari on Wednesday.
“The current account’s shift to a deficit is expected to persist while the pace of capital outflows continues to weigh on international reserves.”.
IMF expressed concern about the current policies, but was optimistic about growth in the oil and agricultural sector.
“The outlook under current policies remains challenging. Growth is expected to pick up to 2.3 percent this year on the strength of a continuing recovery in the oil sector and the regaining of momentum in agriculture following a good harvest.”
– Oct 10, 2019 @ 11:09 GMT |