IMF Tasks Nigeria On Framework For Tackling Inflation

The International Monetary Fund (IMF) has called for a stronger operational framework and price stability to combat inflation in Nigeria.

The IMF Resident Representative for Nigeria, Mr Ari Aisen, said this in his keynote address at the Financial Markets Dealers Association’s (FMDA) quarterly meeting on Friday in Lagos.

Aisen said focusing on price stability was needed to tackle the country’s high inflation.

Speaking on the IMF policy recommendations to safeguard financial stability, he stressed the need for regulatory vigilance and timely actions against undercapitalised banks.

According to him, the introduction of additional macro prudential instruments are essential for financial stability.

He expressed concern over the structural challenges in Nigeria, noting that more efforts were needed to reduce corruption vulnerabilities.

Aisen called for improvement in government efficiency, initiating civil service reforms and ensuring accountability of COVID-19 spending.

He said, “more domestic revenue mobilisation is needed to reduce fiscal vulnerabilities and create policy space.”