IMF urges to broaden Revenue Base and Unify Currency Exchange Rate

10 May 2018 | Andrew Mayeda

Nigeria should widen its tax revenue base to finance growth-enhancing upgrades to the nation’s infrastructure and social programmes, said a senior International Monetary Fund (IMF) official. While the administration of Muhammadu Buhari has made progress in addressing issues such as corruption, the West African country needs to pick up its reform efforts if it wants to boost economic growth, said Abebe Aemro Selassie, director of the Africa department at the Washington-based fund: “To address the education, health, road, electricity and other infrastructure needs they have, they have to have a much higher revenue base than they do now,” said Selassie. “There is tremendous scope to broaden tax bases,” he said, citing property tax as an example.

Nigeria should also move to a single unified foreign-exchange rate, Selassie said in an interview in Washington. In addition to the official exchange rate for the naira, Nigeria offers several different foreign-exchange windows, including one for investors and exporters.

‘Right direction’

“They have reduced the gap between the parallel market and the official market significantly, so that’s a movement in the right direction, but there are still several foreign-exchange rates,” he said. “Even though the gap is narrower, the country would strongly benefit from having a unified and liquid single foreign-exchange market.”

Nigeria was one of several African oil exporters hit hard when crude prices crashed in 2014.

Now, with oil prices rebounding, Nigeria’s recovery is helping drive a “modest” upswing in sub-Saharan Africa, the fund said Tuesday in its latest economic outlook for the region. But turning the recovery into a prolonged period of strong expansion requires bolder steps to support private investment and lift potential growth, the IMF said.

The fund projects Nigeria’s economy will grow 2.1% this year and 1.9% in 2019. The government has been battling an Islamic insurgency in the country’s northeast since 2009 that’s diverted resources to security from public programmes.

Sub-Saharan growth

The IMF predicts sub-Saharan African gross domestic product will expand 3.4% this year and 3.7% in 2019. While regional growth has picked up, it remains well below the pace of expansion before the global financial crisis.

About 40% of low-income countries in the region are “in debt distress or high risk of debt distress,” said the IMF. Delays by oil exporters in adjusting to the crude shock have left some with high debt levels, said the fund, which lends to nations with balance-of-payments shortfalls.

Selassie noted the region’s debt levels have recently risen from a relatively “low base.” But it’s still a cause for concern because countries in the region don’t have ample capacity to service their debts, he said.

Fiscal and monetary policy in South Africa, another major economy in the region, is well calibrated, Selassie said.

However, the government of President Cyril Ramaphosa should step up efforts to open markets such as telecommunications services and implement labour-market reforms to make it easier for young people to work, he said.

Readers Comments

FIFOCapitals@gmail.com | Tue, 19 Jun 2018 12:41:19 +0200
Do You Seek Funds To Pay Off Credits and Debts? { FIFOCapitals@gmail.com } Is Here To Put A Stop To Your Financial Problems. We Offer All Kinds Of Loan (Personal Loan, Commercial Loan, etc.) We Give Out Loan With An Interest Rate Of 1.00%. Interested Applicants Should Contact Us Via Email: FIFOCapitals@gmail.com Please Fill the Application Form Below: - Complete Name: - Loan Amount Needed: - Loan Duration: - Purpose Of Loan: - City / Country: - Telephone: - How Did You Hear About Us: If You Are Interested To Get A Loan Then Kindly Write Us With The Loan Requirement. Please, Contact Us via email: FIFOCapitals@gmail.com
FIFOCapitals@gmail.com | Tue, 19 Jun 2018 12:42:01 +0200
Do You Seek Funds To Pay Off Credits and Debts? { FIFOCapitals@gmail.com } Is Here To Put A Stop To Your Financial Problems. We Offer All Kinds Of Loan (Personal Loan, Commercial Loan, etc.) We Give Out Loan With An Interest Rate Of 1.00%. Interested Applicants Should Contact Us Via Email: FIFOCapitals@gmail.com Please Fill the Application Form Below: - Complete Name: - Loan Amount Needed: - Loan Duration: - Purpose Of Loan: - City / Country: - Telephone: - How Did You Hear About Us: If You Are Interested To Get A Loan Then Kindly Write Us With The Loan Requirement. Please, Contact Us via email: FIFOCapitals@gmail.com
smiles | Sun, 18 Nov 2018 05:26:56 +0100
I am so greatful to Liberty Private Loans for helping me with a loan of 700,000.00 USD through the help of the loan consultant Robert Micheal Green, i am eternally grateful to you. my life has turned around, my finances settled i now own a business which i use in taking care of my family. I am so so grateful to you Mr Robert and God Bless you. You can contact them for your financial help via email: libertyprivatefunding@gmail.com for your financial help. God bless Mr Robert. Yours Sincerely
Raymond Doison | Tue, 20 Nov 2018 12:58:08 +0100
We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease, our bank instrument can be engage in PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffer driven offers. We deliver with time and precision as sethforth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) (Appendix A) 2. Total Face Value: Eur 1 MIN and Eur 5B MAX (Five Billion USD). 3. Issuing Bank: HSBC, London or Deutsche Bank Frankfurt or any Top 25 WEB 4. Age: One Year, One Day 5. Leasing Price: 4% of Face Value plus 1% commission fees to brokers. 6. Delivery: SWIFT TO SWIFT. 7. Payment: MT-103. 8. Hard Copy: Bonded Courier within 7 banking days. All relevant business information will be provided upon request. Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information. Contact : Mr. Raymond Doison Contact Email: crusaderbroker.bgassurance@gmail.com skype:crusaderbroker.bgassurance@gmail.com Whatsapp : +44 7459 947744
CLIFFORD DAVID | Tue, 15 Jan 2019 07:37:52 +0100
We can deliver financial service/instrument(BG/SBLC/MTN/DLC/LC) at affordable price to our customers in other to derive maximum utility. We understand that finding the right company to provide financial instrument is not easy. We are certified financial company that delivers banking instrument for lease which we adhere to our terms and condition. Lease Fee : 3+2 Purchase Fee : 32+2 Over 96% of our clients are satisfied with our work whether it is business or financial service. Once transaction is in progress, we ensure we keep you posted on the progress of your paper. We also get you connected to the provider for personalized service. Instead of stressing yourself out looking for financial instrument or company why not let professional like us deliver financial instrument to you within the time frame required by you. For further details contact us with the below information.... Clifford David Email: optivofinanceplc@gmail.com
Walsh Robert | Thu, 24 Jan 2019 11:33:31 +0100
We are authorized Financial consulting firm that work directly with A rated banks eg Lloyds Bank,Barclays Bank,HSBC bank etc We provide BG, SBLC,and lots more for clients all over the world. We are equally ready to work with Brokers and financial consultants/consulting firms in their respective countries. Our procedures are most reasonable and safest as we operate a 100% financial risk free process which entails that the issuing and receiving bank continues the transaction immediately after DOA is countersigned We offer certifiable and verifiable bank instruments via Swift Transmission from a genuine provider capable of taking up time bound transactions. We are RWA ready to close leasing with any interested client in few banking days We hope to establish a long term business relationship with you even after this first trial Regards WALSH SMITH, ROBERT email : info.iqfinanceplc@gmail.com skype: cpt_young1 Tel contact: +447031968934 Registered No: 04374045
Gary Derek Beckett | Fri, 08 Feb 2019 18:32:19 +0100
If you are seeking a Bank Guarantee (BG), SBLC for Lease or Purchase, we are the best financial institution to help you to secure verifiable and easily monetized BG, SBLC and other financial instruments. At SPOT FINANCE, we are a group of experienced bankers, seasoned brokers with years of experience in the financial instrument industry. We deal directly with reliable Providers of BG, SBLC, MT109, MT799, MT760, Loans, Sale and Lease of Financial Instruments issued by Top rated global banks. Our procedure is TIME SAVING and transparent. With us, you can secure any denomination of BG / SBLC from 10M to 10B (EURO / USD) in time for use in Heavy / Light project financing anywhere in the world. Basically, we are here to help you move your business to the next level. Anticipating your interests, Email: info.spotfinanceltd@gmail.com Skype: spotfinanceltd Sincere regards, Gary Derek Beckett SPOT FINANCE LTD