The International Monetary Fund warned that African governments increasingly relying on local credit markets are exposing commercial lenders to heightened sovereign default risks, according to Director Abebe Selassie in a weekend publication. The fund urged Nigeria to channel revenues freed from petroleum subsidy elimination toward healthcare and education rather than curtail expenditure, emphasizing social safety nets for disadvantaged populations.
Selassie advocated strengthening tax collection mechanisms through digitization and administrative reforms mirroring strategies implemented by Ghana, Rwanda and Tanzania, which improved compliance by engaging taxpayers and supporting revenue officials. Public confidence in taxation depends on transparent budget management and accountable governance, the director noted, while recommending debt-for-development agreements and blended financing instruments combining concessional and private capital for infrastructure and environmental projects.
Selassie advocated strengthening tax collection mechanisms through digitization and administrative reforms mirroring strategies implemented by Ghana, Rwanda and Tanzania, which improved compliance by engaging taxpayers and supporting revenue officials. Public confidence in taxation depends on transparent budget management and accountable governance, the director noted, while recommending debt-for-development agreements and blended financing instruments combining concessional and private capital for infrastructure and environmental projects.
