IMF advises Nigeria to remove subsidies, raise taxes

The International Monetary Fund (IMF) says Nigeria needs to deepen its drive in subsidy reforms and improve tax administration to achieve its development need, the Daily Trust reported February 29, 2012.

According to the publication, the IMF executive board handed down this advice to the Nigerian government at its 2011’s Article IV consultation with Nigeria held on February 22, 2012.

A public information notice quoted by the publication, was issued by the IMF detailing a list of what it said were its conclusions on the Nigerian economy based on its assessment.

The IMF supported Nigeria’s strategy to rebuild fiscal buffers through better prioritization of public expenditure, continued subsidy reform, and improved tax administration, and that “efforts in these areas will also provide the necessary resources for targeted social programmes and needed infrastructure.”

The Fund according to the publication “welcomed the (Nigerian) authorities’ initiatives to improve the business climate and reform sectors with high employment potential, particularly agriculture” and “encouraged the authorities to persevere with planned reforms in the energy sector under appropriate social safeguards.”

By Pascal Kelvin Kudiabor