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: 1,077

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...
Jesus Will Complain About Nigeria’s Situation If He...

Buhari writes Senate to confirm Muhammad as CJN...

NCC gets deadline extension to reduce data cost,...

Diezani jewellery: Auctioneers attack Magu over plans to...

Ex-governor Theodore Orji's son is Abia Speaker

Presidency endorses 65-year retirement age for teachers

Ikeoha Foundation Scholarship Awards hold today at Udi...

APC endorses Buhari Campaign Organisation to takeover NASS...

IPOB leader, Nnamdi Kanu resurfaces in Israel

3,641 killed in Benue, Zamfara, four others in...

Gunmen kill APC chieftain in Benue

Boko Haram kidnaps 8 in Oyo

 

Latest News Election: INEC gives N1.9m cheque to family of deceased corps member How Yahoo Yahoo Boy pulls off $1m scam from prison, buys N70m homes – EFCC I’ll continue to promote peace in Enugu – Gov. Ugwuanyi APC using Jonathan to legitimise fraud, says Dickson Oyo PDP to APC: Only killers, vote thieves will celebrate Kogi polls outcome 2nd Anniversary: Enugu govt immortalizes late Ekwueme Horror: Thugs burn Kogi PDP Women Leader alive in her home Kogi Gov Election: My victory for true democrats – Bello Nigeria is in Danger!!! What You Should Know About the Fast-spreading Oro-facial Gangrenous Disease Jesus Will Complain About Nigeria’s Situation If He Were To Be Here – Obasanjo Bayelsa: Diri rejects election result, declares himself Bayelsa governor-elect Police recover coffin, multiple female underwears from Enugu pastor’s house

 

Most Read Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (15,459 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (15,219 views) ASUU strike: Senate intervention ends in deadlock (14,418 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (13,394 views) All you need to know about Peter Obi, PDP VP Candidate (12,960 views) Sickle cell support group seeks lgovernment intervention (12,438 views) Ebonyi bans embalming of corpses in homes (12,202 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (11,283 views) Israel serves quit notice to African illegal migrants (10,935 views) The Big Kick-off: World greatest sports fiesta begins in Russia (10,888 views) France wins 2018 World Cup Final (10,794 views) England beat Spain to win U17 World Cup final (10,776 views)

 

SECTIONS NEWS (1,936) EDITORIAL (8) POLITICS (434) SOCIETY (114) SPORTS (22) BUSINESS (290) HEALTH (19) EDUCATION (28) INTERNATIONAL (40) ENTERTAINMENT (15) TECHNOLOGY (1) COLUMNISTS (0) LETTERS (0) OPINION (15)

 

 

Julius Agwu - Crazy Interview Demands