The International Monetary Fund (IMF) has said Nigeria currently has one of the lowest revenues in the world.
The IMF said this is particularly so because of the drop in oil prices and poor revenue base in non-oil sectors.
The Chief of the World Economic Studies Division of the IMF’s Research Department, Oya Celasun, gave the indication, yesterday, during the public presentation of the World Economic Outlook at the ongoing World Bank/IMF annual meetings in Washington DC.
Nigeria has been battling with budget deficits year-on-year even as it funds almost half of annual budgets on borrowings – locally and internationally.
The IMF also said per capital income for Nigeria still remains largely week.
She also said the CBN forex restrictions were limiting investments into the Nigeria’s economy.
The IMF also noted that though there was a slight positive growth projection for Nigeria this year, but it was not sufficient to turn per capital growth into positive.
There was slight upward review for growth this year, the IMF said, adding that the growth came mostly from strong agricultural production early in the year but not quite enough to turn per capital growth into positive.
For some time now, we have been emphasising the need for comprehensive package to lift growth, Celasun said.
“One element of that will have to be strong non-oil revenue mobilisation.
“Nigeria has one of the lowest revenue in the world and this is hit hard by drop in oil prices” she explained.
“It is essential for the country to spend more on priorities like social safety and Infrastructure. Other area is the need for tight monetary policy and unified exchange rate. A restricted exchange rate has been distorting private and public sector decisions and cutting back investments,” she noted.