The International Monetary Fund (IMF) has reiterated its advice to Nigeria to step up efforts to bring more people into the tax net, increase taxes, and reduce the country’s debt burden. These suggestions emerged from sidelines of the on-going IMF/World Bank Spring meetings in Washington DC.
IMF also restated the need for Nigeria to phase out its controversial petrol subsidy and redirect such funding to targeted subsidies on critical development drivers, like health and education. The recommendation was contained in IMF’s latest Fiscal Monitor, titled, “On the path to Policy Normalisation,” which was released to newsmen
The fund noted that Nigeria’s debt was projected to continue to rise.
Speaking with THISDAY, on the sidelines of the IMF/World Bank Spring meetings, Division Chief, Fiscal Affairs Department, IMF, Paulo Medas, said, “In general, what we are saying about Nigeria is the need for a medium-term plan to reduce debt vulnerabilities over time and it is because Nigeria has very low tax revenues. So, that makes it more vulnerable to these types of shocks and tightening global conditions
