THE International Monetary Fund (IMF) has declared that poverty remains high in Nigeria despite several years of solid growth. The executive board of the International Monetary Fund (IMF) revealed this in an analysis of the Nigerian economy in the Article IV consultation.
According to the board, despite the fact that authorities in the country were making efforts to achieve the Millennium Development Goals (MDGs) and have established targeted prog-rammes financed, poverty was estimated at about 55 per cent based on the 2004 household survey, empha-sising that development indicators were low.
The board further said that Nigeria was increasingly integrating into global financial markets, improving macro-economic conditions, reducing external vulnerabilities, especially since the recapitalisation of the banking industry.
The board also said that the financial sector was expanding rapidly, supporting private sector activities, strengthening treasury capacity to offer new products found in other emerging markets, and expanding into cross-border and cross-sector activities.
According to the board, inflation has been brought down to single digits while the changes in macro-economic conditions and the financial market brought new challenges for monetary management.
The executive directors of the fund advised the Federal Government to secure agreement with states on a fiscal framework that would continue to delink spending from oil revenue flows and thus protect macroeconomic stability and positive outlook for faster growth, reducing poverty and attaining the MDGs.