The International Monetary Fund (IMF) has expressed the view that maintaining stable exchange rates and reducing inflation in Nigeria will make the country more attractive to investors. Ari Aisen, the IMF representative in Nigeria, made this statement during an interview on Arise Television.
He reiterated the IMF’s support for the removal of fuel subsidies and the unification of exchange rates in Nigeria, emphasising that these measures would have a positive impact on the country’s economic prospects. Aisen pointed out that lower inflation and more predictable exchange rates create a conducive environment for potential investments to flow into Nigeria.
Aisen also acknowledged that Nigeria’s Gross Domestic Product (GDP) growth has been modest, which was expected due to the impact of higher fuel prices and inflation. He suggested that effectively managing policies related to fuel subsidies and exchange rate control would lead to a brighter economic outlook for Nigeria.
As of August, Nigeria’s headline inflation rate stood at 25.80 percent, according to data from the National Bureau of Statistics. The IMF’s perspective suggests that addressing inflation and exchange rate stability are crucial steps for improving Nigeria’s economic attractiveness and encouraging investment in the country.