Email Support
24/7 Contact Center 08094449044
Office Hours Mon - Fri 0800hrs - 1700hrs

IMF Predict Weak Revenue Generation for Nigeria

IMF Predict Weak Revenue Generation for Nigeria

The International Monetary Fund (IMF) has predicted a weak revenue generation for Nigeria, with this having some implications in the short term. Added to this also is the Federal Government’s recent projections of lower revenue for 2019 than budgeted for 2018. According to a report, declining crude oil price may also place additional macroeconomic pressure on the nation in the short term. It added that the proposed new national minimum wage would place additional pressure on the government’s fiscal position.

Further, it pointed out that the Central Bank of Nigeria had limited options: which were to either maintain current policy rates and increase the yields on Nigerian Treasury Bills at the Open Market Operations; or increase the Cash Reserve Requirement to mop-up the expected liquidity in the financial market. While the FSDH research expects the yields on the NTBs to increase in November, it stated that there were opportunities to take profit on some Nigerian Eurobonds investments and buy back later when prices drop. In addition, there are strong growth opportunities in the telecommunications industry despite its temporary challenges.

Leave a Comment

Notice: Undefined variable: user_ID in /home/hicsupport/public_html/ on line 85