IMF Criticizes Nigeria’s Monetary and Fiscal Policies.

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The Central Bank of Nigeria’s monetary policy has been criticized by the International Monetary Fund. It said Nigeria has been ineffectual in containing growing inflation.

The IMF recommended the Central Bank of Nigeria to be cautious about raising the monetary policy rate in its study titled “How Fiscal Restraint Can Help Fight Inflation.”

It suggested that the Federal Government tighten up its fiscal policies by making investments in crucial industries. This may steer the economy in a more positive direction over the long run.

According to the IMF, Nigeria might experience a food crisis in 2023. Nigeria and other countries are at danger of political unrest due to inflation.

The IMF further cautioned that “fiscal stimulus in the current climate of high inflation would drive central banks to slam on the brakes harder to reduce inflation.

Punch.

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