The most recent outlook report from the International Monetary Fund (IMF) for sub-Saharan Africa has highlighted that the economic reforms initiated by the current federal government are still struggling to show positive impacts, even 18 months after their inception.
Furthermore, stakeholders in the food sector have expressed disappointment, stating that the reforms have not improved the quality of life in the country.
The IMF report, released yesterday, acknowledged some countries that have seen minor success in their reforms, but Nigeria was notably absent from this list, instead being identified as one of the countries that have failed to achieve the desired results.
According to the report, the average economic growth rate in the region is projected to remain at 3.6% for the full year of 2024, with Nigeria’s growth rate lagging behind at 3.19%, below the regional average.
During the presentation of the report at the Lagos Business School, IMF Deputy Director Catherine Patillo noted that while macroeconomic imbalances in the region have been decreasing, Nigeria was not included in the countries showing improvement.
Patillo stated, “More than two-thirds of countries have implemented fiscal consolidation measures, with some notable improvements seen in countries such as Cote d’Ivoire, Ghana, and Zambia.”
The report also mentioned that Nigeria is one of the countries struggling to control inflation, with Patillo stating, “Inflation is still in double digits in almost one-third of countries, including Angola, Ethiopia, and Nigeria, and above target in almost half of the region.”
The report highlighted the impact of debt burden on fiscal stability, listing Nigeria among the countries facing challenges due to rising debt service payments.
Looking ahead, the IMF’s report depicted a mixed outlook for the region, categorizing Nigeria among those still facing challenges due to its reliance on natural resources. The report also suggested that Nigeria’s economic reforms are facing resistance from social and political factors.
Stakeholders in Nigeria’s food sector have criticized the government’s agricultural policies, stating that they have not led to significant improvements in food production.
The ActionAid Nigeria Country Director highlighted that despite efforts by the government, Nigeria remains one of the most food-insecure nations in 2024.
Similarly, the Chief Farmer of Africa expressed that the current agricultural reforms lack comprehensive implementation, resulting in food insecurity across the nation.
The Chairman of All Farmers of Nigeria, FCT Chapter, commended recent initiatives like the direct delivery of farm inputs to farmers, but emphasized the need for consistency and wider implementation of such policies.
In conclusion, the report and stakeholders agree that there is a need for more effective and comprehensive implementation of reforms in the agricultural sector to address the challenges faced by farmers and ensure food security in Nigeria.
