Nigeria rated second worst country in use of sovereign wealth funds – IMF

By AdvocateNews on 11/04/2019

Share on facebook Yahoo mail icon Gmail icon

Views: 1,744

Christine Lagarde, IMF President and Zainab Ahmed, Minister of Finance
Christine Lagarde, IMF President and Zainab Ahmed, Minister of Finance

The International Monetary Fund, IMF, Thursday, in its Fiscal Monitor report released at the ongoing Spring Meetings of the World Bank and IMF in Washington, United States of America, has ranked Nigeria as the second worst country in the world in the use of Sovereign Wealth funds.

This is even as the Fund advised the federal government to embark on tax reforms while using other fiscal policy instruments to complement the monetary policy in order to enhance economic growth amidst growing protest by Nigerians over proposed increase in Value Added Tax, VAT.

The IMF Fiscal Monitor report showed that Nigeria beat only Qatar in the 33 country ranking where Ghana Sovereign Wealth Fund came second on the top performers after Columbia.

The Fund explained that the index was compiled using the corporate governance and transparency scores of the sovereign wealth funds and the size of assets as a percentage of 2016 GDP of the countries considered.

The Report stated:  “It is critical to develop a strong institutional framework to manage these resources—including good management of the financial assets kept in sovereign wealth funds—and to ensure that proceeds are appropriately spent.

“The governance challenges of commodity –rich countries – that is, the management of  public assets- call for ensuring a high degree of transparency and accountability in the exploration of such  resources. Countries should develop framework that limits discretion, given the high risk of abuse and allow for heavy scrutiny.”

Meanwhile, Director, Fiscal Affair Department of the IMF, Mr Vitor Gaspar, Thursday, said that tax reform is a major issue in Nigeria and must be given adequate attention.

He said: “Nigeria can use excise tax and also give tax incentives and exemption to enhance economic growth. Fiscal policy should tread carefully to balance growth and sustainability objectives.”

He advocated for inclusive and growth-friendly budget re-composition to upgrade tax, social spending, and active labour market policies, as well as investment in infrastructure for better public service delivery.”

While commenting on global fiscal policy, he said: “Over the past decade, fiscal policy has focused primarily on macroeconomic stabilization in response to shocks, notably the global financial crisis. Less emphasis has been placed on reforms to foster long-term inclusive growth by adapting to changing demographics, advancing technology, and deepening global integration.“ 

In many countries, public and private debt hover near historical peaks, long-term growth and development prospects are uninspiring, and inequality remains striking. With global growth slowing and uncertainty rising, fiscal policy should prepare for possible downturns—balancing growth and sustainability objectives—while also putting more emphasis on reforms to adapt to a fast-changing global economy.”

Posted 11/04/2019 08:47:10 AM

 

Share on facebook Yahoo mail icon Gmail icon


 

You may also like...
Buhari considers nationwide state of emergency

Gunmen kill three vigilantes, abduct 30 travellers in...

17 killed, 28 injured in China restaurant collapse...

Final year student of Kogi university shot dead...

Buhari approves new security measures for S/East, S/South...

French president slapped while greeting crowd, arrest made...

Ogun Gov hails Laycon over BBNaija victory

Late President Umaru Yar’Adua’s son arrested for killing...

Police arrest LASU student kissing three-year-old in viral...

Ekweremadu hails Jonathan @ 63

Yoruba leader, Sen. Ayo Fasanmi is dead

Court dismisses FIRS’ suit seeking to stop Rivers...

 

Latest News Ex-Enugu Commissioner for Lands, Surv. Nnam, regains freedom Some judges sell judgments, retire to escape NJC sanctions – Jega Delayed November Salary: Policemen complain of hunger, poverty Umahi confirms killing of five abducted construction workers in Ebonyi Northerners Forum salutes Soludo, solicits key role, assignment in his administration Mkpurummiri addiction has no cure – NDLEA warns Buhari suspends AEDC management as firm faces internal crisis Man commits suicide after losing company’s N150,000 on bet 30 burnt to death as bandits set bus ablaze in Sokoto Students strip policeman, set school ablaze, principal flees Security agents, not ESN, planting bombs in Igboland – IPOB Fani-Kayode has erectile dysfunction, I had four kids via artificial insemination – Ex-wife claims

 

Most Read Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (229,503 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (229,502 views) Sickle cell support group seeks government intervention (229,502 views) Ebonyi bans embalming of corpses in homes (229,502 views) FG sends new directive to banks, schools as Buhari extends lockdown by four weeks (229,501 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (229,498 views) I’ve no Coronavirus, govt wants to kill me – Anambra Index case (229,498 views) Fleeing ex-DG Imo Broadcasting Corporation who stabbed wife to death arrested (229,498 views) HUSHPUPPI: CRIMINALS HAVE NO TRIBE. THEY SHAME ALL OF US... (222,808 views) ASUU strike: Senate intervention ends in deadlock (222,629 views) All you need to know about Peter Obi, PDP VP Candidate (172,975 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (171,289 views)

 

 

SECTIONS FAITH (158) EDITORIAL (19) NEWS (7,431) POLITICS (496) SOCIETY (132) SPORTS (58) BUSINESS (370) HEALTH (59) EDUCATION (50) INTERNATIONAL (183) ENTERTAINMENT (55) TECHNOLOGY (6) COLUMNISTS (57) LETTERS (4) OPINION (42)

 

 


There are no video entries posted yet.