Our Nigerian authorities thank staff for the constructive engagement during the Article IV consultation. They broadly concur with staff’s assessment of the macroeconomic challenges facing the country and their policy recommendations.
Following five successive quarters of recession, the Nigerian economy has rebounded, driven by policy responses tailored to lay a strong foundation for inclusive growth and sustainable development. During the second quarter of 2017, economic activity picked up on the back of strong implementation of macro policies initiated under the Economic Recovery and Growth Plan (ERGP). The ERGP was developed in response to the recession, with the goal to fundamentally change the direction of national economic development. Its key priorities include stabilization of the macroeconomic environment and achieving low inflation, stable exchange rates, and sustainable fiscal and external balances.
Our authorities, however, wish to register their displeasure with the phrase “muddle through” outlook in the staff assessment and failure to appreciate government efforts despite several initiatives to strengthen the fiscal situation and promote growth. Equally, they find the reference to “pervasive/widespread corruption” in Nigeria inappropriate, given that corruption is relative across the globe, and it relies on Third Party Indicators (TPIs), some of which are questionable owing to the quality and reliability of their sources and methodologies. Going forward, the authorities request staff to correct the errors and use proper phrases to reflect actual situations.