Latest posts
Home / Nigeria News / Inflation in Nigeria: IMF supports FG decision to reduce fiscal deficit for 2011 to 2013

Inflation in Nigeria: IMF supports FG decision to reduce fiscal deficit for 2011 to 2013

The International Monetary Fund (IMF) recently expressed concern over the inflation rate in Nigeria, stating that it is escalating and resulting to a continuous fall in our international reserves even as relevant Nigerian authorities favour the existing exchange rate. The National Bureau of Statistics which had earlier approximated Nigeria’s inflation rate around 13 percent year-on-year prompted the IMF to specifically call on the Central Bank of Nigeria (CBN) to conduct monetary policies that will reduce inflation to a single-digit level.

IMF in addition threw its weight behind Nigeria’s intended reduction of fiscal deficit for 2011 to 2013, adding that such would enable the government rebuild safety buffers, support an expansion of credit to the private sector and lower inflation.

The Fund has therefore emphasised the importance of developing a consistent macroeconomic policy framework that will see the country’s fiscal and monetary authorities working closely together to help achieve stability and growth in the economy.