The International Monetary Fund has charged Nigeria to mobilize revenue inorder to reduce the country’ propensity of acquiring more debts. This the International Monetary Fund said in a post tagged ‘IMF staff completes 2020 article IV mission to Nigeria’.
The IMF stated that Nigeria’ economy is expected to rebound in 2021. While addressing the economy of Nigeria, IMG noted that for the country’ economy to rebound it is important for the country to adopt thorough tax policy and administration improvements in order to reduce debt vulnerabilities.
The International Monetary Fund noted that the rate of poverty in Nigeria is high and gradual recovery is the best for now before major economic recovery takes effect. According to IMF inflation is increasing, and external vulnerabilities has increased.
The IMF further stated that, “The COVID-19 global pandemic is exacting a heavy toll on the Nigerian economy, which was already experiencing falling per capita income and double-digit inflation, with limited buffers and structural bottlenecks’.
The IMF added that low prices of oil and much capital outflows have significantly increased balance of payments , which has increased unemployment nationwide. The inflation is also fueled by supply shortages. Thus the Gross Domestic Product is expected to contract by 3.4% in 2020.