During a recent press briefing, the International Monetary Fund (IMF) advised the Nigerian government to prioritize the implementation of social protection measures to alleviate the hardships faced by poor and vulnerable Nigerians. Julie Kozak, the IMF’s Director of Communications, emphasized the urgent need to address the surging prices of food, drugs, and transportation, stating that these measures are crucial to reforming costly subsidies on fuel and electricity in the future.
Kozak highlighted the importance of addressing food insecurity as an immediate priority, especially with food price inflation reaching 35% year-over-year in January. She praised the approval of a targeted social safety net program, which will provide cash transfers to vulnerable households, as a significant step in easing the suffering of Nigerians. Kozak stressed that full implementation of the program is necessary before the government can effectively address fuel and electricity subsidies to ensure the protection of low-income households.
The IMF also commended the recent actions of the Monetary Policy Committee (MPC) to further tighten monetary policy, viewing it as a positive step towards curbing inflation and relieving pressure on the naira. Kozak noted that this decision should help contain inflation and reduce pressures on the national currency.
Additionally, the IMF announced plans to release a detailed annual report on Nigeria’s economy, shifting the focus to a broader economic landscape. This report follows a visit by an IMF team to Nigeria from February 12 to 23, during which discussions were held with government officials and the Central Bank of Nigeria (CBN) to address the nation’s economic challenges.
The IMF’s recommendations and support for Nigeria’s economic policies highlight the importance of implementing social protection measures and tightening monetary policy to mitigate the impact of inflation and improve the country’s economic outlook.
Nairametrics