International Monetary Fund (IMF) yesterday called on the federal government to resolutely pursue on-going structural reforms in order to promote inclusive growth.
In a statement issued at the conclusion of its Article IV consultation Mission in Nigeria, Mr. Gene Leon, the Fund’s Mission Chief and Senior Resident Representative in Nigeria said, “To promote inclusive growth and mitigate the impact of vulnerabilities, ongoing structural and institutional reforms should be pursued resolutely”
The Fund commended the  gross domestic product(GDP) growth of 6.8 per cent, low inflation rate and stable exchange rate achieved in 2013. It however stressed the need to manage risks to the economy. It also called for the sustanability of the current tight monetary policy of the CBN to maintain low inflation rate.
Leon said, “Nigeria’s economy has continued to perform strongly in 2013. Real GDP grew by 6.8 percent in the third quarter of 2013 (compared to third quarter 2012), supported by robust performances in agriculture, services, and trade.

Oil theft/production losses have adversely impacted export receipts and government revenues, leading to a significant drawdown from the Excess Crude Account.

Inflation declined to 7.8 percent (end-September 2013) from 12 percent at end 2012, in part owing to lower food prices and monetary policy implemented by the Central Bank of Nigeria (CBN). The exchange rate has been stable, and the banking sector is well capitalized with low levels of non-performing loans.
“Although the outlook is positive, risks need to be managed. Growth is projected to increase to about 7 percent in 2014, while inflation should remain subdued in the single digits. Nigeria could be affected, however, by a decline in oil prices, the pace of recovery in global economic and financial conditions, capital outflows, continued losses in oil production, or increased security concerns.

At the same time, the economy can manage such shocks given a relatively flexible exchange rate regime, improved financial crisis management capacity, and a stable banking system. But fiscal buffers are low and a sustained high rate of growth is needed to reduce unemployment, and poverty.