IMF’s Recommendations Not In Nigeria’s Best Interest – LCCI
The tight monetary policy recommended for Nigeria by International Monetary Fund is inconsistent with economic recovery process.
This is the position of the Lagos Chamber of Commerce and Industry, LCCI.
The Director-General of LCCI, Mr Muda Yusuf, stated this in an interview with the News Agency of Nigeria, NAN on Monday in Lagos.
Yusuf was reacting to the report of the IMF Article IV Consultation on the Nigerian economy.
The IMF Article IV Consultations is an independent assessment of the Nigerian economy and the current economic management framework.
"We do not share the view of the IMF that monetary policy needs to be further tightened now.
"It is inappropriate to call for further tightening of monetary policy in an economy that is grappling with recession, high unemployment, high operating costs, high interest rates, faltering real sector.
"Already, interest rate ranges between 25 and 30% and this is adversely affecting businesses and stifling economic growth," he said.
Yusuf also objected to the recommendation on review of existing Value Added Tax and excise duty.
"Such a move would not be consistent with the economic recovery process.
"It will also not be consistent with the Federal Government’s vision to build an inclusive economy, spur growth, support the real economy and create jobs," he said.