The International Monetary Fund (IMF) harped on the need for Nigeria to develop a clear structure for dealing with bank failures while forecasting a recovery in the country’s economic growth next year. The IMF said the near-term outlook of the economy is “challenging” and highly dependent on global oil prices, reports This Day. The directors of the Executive Board of the Fund welcomes the improvements that are already taking place in Nigeria’s financial sector, including steps to improve the credibility of information on bank balance sheets and to establish a prudential unit within the Central Bank of Nigeria (CBN). However, they asked the country to strengthen cross-border supervisory arrangements in view of the rapid expansion of Nigerian banks across borders and emphasized on the urgency to implement the framework for risk-based and consolidated supervision. Nigeria’s economy has been hit hard by the global financial crisis and a fall in oil prices.
