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IMF Article IV calls on Nigeria to ensure transparency in expenditure

The IMF expects Nigeria to undertake fiscal adjustments in response to underperformance in oil production and declining global prices. With current output below the 2.06mbpd target and Brent crude trading below the $75pb benchmark, Nigeria may need to cut recurrent spending, improve revenue mobilization, and enhance fiscal transparency to sustain its fiscal 2025 budget goals.

In its review, the IMF commended Nigeria’s bold reforms initiatives over the past two years and projected GDP growth of 3.4% in 2025 and 3.2% in 2026. However, it cautioned that key challenges such as high, though declining, inflation; infrastructure gaps; insecurity; and fiscal slippages, could derail progress.

Price of cassava dropped to N80,000/ton

The price of a ton of cassava has dropped by 33% (YTD) to N80,000 from N120,000. This decline is driven by reduced demand from the pharmaceutical and food industries, which have turned to cheaper imported starch. Meanwhile, increased demand from the UK could prompt Nigerian farmers to prioritize exports for forex earnings. This shift may reduce local supply and potentially drive up the price of processed cassava products like garri, fufu. and lafun.

FDC’s Senior Associate Research, Halimah Adediran, and analyst, Toju Meggison, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated, respectively.

Click the link below to watch the video.

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