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: 865

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...
Fayose to Buhari: You can’t rig Ekiti polls,...

Obono-Obla: How native doctor led panel to Ekweremadu’s...

Saraki reacts as EFCC seizes his houses in...

Insecurity worse under Buhari than Jonathan –Sheikh Gumi...

I’m still in EFCC custody, not yet free...

Osun rerun: PDP rejects results, says it’s black...

Court remands man, 41, for allegedly raping four...

Court orders Abaribe, Jewish Priest to produce Kanu...

Rivers elections: Court dismisses suit seeking to stop...

2019 and Ugwuanyi’s Enduring Legacies

GTB in a mess, says Rights group

Police recover 198 arms from herdsmen, rustlers in...

 

Latest News Senate: Appeal Court halts Sen. Nnaji's bid to stop Ex-Gov. Chimaroke Nnamani FG dismisses report of Appointment of Onu as SGF EEDC frowns at attacks on its operations staff in Aba Bandits kill 70, sack 8 villages in Niger Gov. Oyetola meets Army Chief over herdsmen attacks, kidnappings in Osun Opposition bashes Senate for rejecting motion to debate Buhari’s Democracy Day speech Five injured as explosion rocks Port Harcourt mall Govt has impoverished Nigerians to oppress them, says Ezekwesili Buhari unveils second term agenda, promises to assemble strong team FULL TEXT OF AN ADDRESS PRESENTED BY PRESIDENT MUHAMMADU BUHARI AT THE 2019 NATIONAL DEMOCRACY DAY AT THE EAGLE SQUARE, ABUJA Buhari signs June 12 Democracy Day Bill into law Ex-governor Theodore Orji's son is Abia Speaker

 

Most Read Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (11,190 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (10,816 views) ASUU strike: Senate intervention ends in deadlock (10,163 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (9,093 views) NAFDAC eases processes, cost of registering products for MSMEs (8,728 views) Sickle cell support group seeks lgovernment intervention (8,189 views) Israel serves quit notice to African illegal migrants (8,026 views) Ebonyi bans embalming of corpses in homes (7,976 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (6,874 views) IPOB: ‘We need urgent clarifications on Nnamdi Kanu’s status, whereabouts’, UK Govt tells FG (6,838 views) All you need to know about Peter Obi, PDP VP Candidate (6,800 views) The Big Kick-off: World greatest sports fiesta begins in Russia (6,737 views)

 

SECTIONS NEWS (1,249) EDITORIAL (8) POLITICS (431) SOCIETY (109) SPORTS (19) BUSINESS (264) HEALTH (17) EDUCATION (23) INTERNATIONAL (33) ENTERTAINMENT (10) TECHNOLOGY (1) COLUMNISTS (0) LETTERS (0) OPINION (10)

 

 

Julius Agwu - Crazy Interview Demands