Nigerias economy still vulnerable shocks says fg

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Nigeria's Economy Still Vulnerable to Shocks, Says FG

The Federal Government of Nigeria has warned that the country's economy is still vulnerable to external shocks, despite recent improvements in the macroeconomic environment. The government made this statement in its latest Economic Outlook report, which highlights the need for continued fiscal discipline and structural reforms to ensure sustainable growth.

According to the report, Nigeria's economy has shown resilience in the face of global economic headwinds, with GDP growth projected to reach 2.5% in 2023. However, the government remains concerned about the country's exposure to external shocks, including fluctuations in global commodity prices, changes in global trade policies, and the impact of climate change on agricultural production.

The report also highlights the need for Nigeria to diversify its economy and reduce its dependence on oil exports, which currently account for over 90% of the country's foreign exchange earnings. The government is working to promote non-oil sectors such as manufacturing, agriculture, and services, but progress has been slow due to infrastructure constraints and regulatory challenges.

To mitigate the risks associated with external shocks, the government is implementing measures to strengthen the country's fiscal position, including reducing its budget deficit and increasing its foreign exchange reserves. The government is also working to improve the business environment and increase private sector investment, which is critical for driving economic growth and creating jobs.

Overall, while Nigeria's economy has shown some resilience in recent years, the government remains cautious about the risks associated with external shocks and is working to implement policies that will promote sustainable and inclusive growth.