The International Monetary Fund, IMF Friday, said that the ongoing economic reforms in Nigeria must be holistic to produce the right impact in terms of curbing inflation and improving welfare.
While commending the recent decisions of the Federal Government to remove fuel subsidy and unification of official exchange rates, Selassie, averred that these measures must be complemented with tight monetary and fiscal policies. He said: “In Nigeria the most important cause of the pressures is the fact that the government does not generate enough tax revenue for all the services it needs to provide. Interest payment as a share of revenue is very high and not leaving much room to spend on other issues, that is the key issue that needs to be worked on.
“Similarly, the fuel subsidy will not help or stick unless they tighten monetary policy. Unless you are also doing something to mobilise more tax revenue.