Measures taken to reduce the dependence of the Nigerian economy on oil are starting to succeed, according to the International Monetary Fund (IMF). In a statement released after talks with Nigerian authorities during a fact-finding visit to the country, the IMF issued a statement saying that real GDP was projected to grow at 6.4% “owing to continued strong performance in the non-oil sector”. Inf lation declined to 7.9% by the end of 2013, supported by lower food prices, fiscal consolidation, and a tight monetary policy stance. Economic growth is expected to improve further in 2014, driven by agriculture, trade, and services. Inf lation should continue to decline, with lower food prices from higher rice and wheat production and support by a tight monetary policy. Challenges remain, however: Despite significant job creation, unemployment and poverty are high and social indicators lag those of peers.
