In a statement published on March 31, International Monetary Fund (IMF) scaled down Nigeria’s growth forecast for 2016 to 2.3%, from 3.2% last February amid oil price slump. In 2015, Africa’s top oil producer recorded an economic growth of 2.7%.

“Key risks to the outlook include lower oil prices, shortfalls in non-oil revenues, a further deterioration in finances of state and local Governments, deepening disruptions in private sector activity due to constraints on access to foreign exchange, and resurgence in security concerns,” IMF said in its statement.

The institution also recommended Nigerian authorities to implement policies aiming to preserve budget viability, reduce external imbalances and advance structural reforms favoring a more inclusive growth.

It also said these authorities should gradually increase VAT’s (Value Added Tax) rate and broaden tax base, while maintaining infrastructure and social spending.