The International Monetary Fund
(IMF) has commended the Nigerian government for fighting corruption and
carrying out tax audits.
Speaking to some journalists, on the sidelines of the ongoing annual meetings of the IMF
and World Bank Group, Cathy Pattillo, assistant director of IMF’s fiscal
affairs department, urged Nigeria to do more.
“We are welcoming the growth and
recovery plan and the new cabinet which is then implementing key reforms
including revenue mobilization by raising the VAT rate and the 2020 budget. And
reforms in various anti-corruption measures also that would reduce vulnerabilities
and raise growth to higher per capita levels,
“So now is the opportunity to
look at a comprehensive reform to sustainably increase non-oil revenue.”
“The government has taken welcome
steps with tax audits, e-filling, closing loopholes, combating corruption in
tax offices, increased exercised taxes and it also launched its strategic
growth initiatives that call for this high-level committee. All of these are
very welcome.
“And the article IV consultation
earlier this year had our staffs recommend further VAT reforms and broadening
the tax base by removing CIT exemptions and customs duty waivers.”
CAPITAL INFLOWS TO REMAIN STRONG
Tobias Adrian, Adrian, the
director of IMF’s monetary and capital markets department, said the fund
projects that investment inflows into sub-Saharan African countries will hit a
record high in 2019.
“Flows in investment in
sub-Saharan Africa has been strong and expected to reach a record high this
year,” he said during the unveiling of the Global Financial Stability report.
“Global financial conditions are
favourable to countries such as Nigeria, at the moment. Issuing bonds in hard
currency and the domestic currency is possible because of favourable global
financial conditions. And of course, It is key what countries such as Nigeria
are doing with those borrowed funds. Undertaking structural reforms to develop
the economy is key.”
Adrian advised that Nigeria
should develop both its domestic and external debt market because they are
“important for economic growth and economic development but of course any
borrowing has to be managed in a responsible manner that at both costs and
benefits so borrowing can be helpful for economic growth and investment but it
can also be dangerous when negative shocks arise.”
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