BloombergBusiness: Africa Nations Must Cut Fuel Subsidies on Oil Drop, IMF Says

(Bloomberg) -- African nations should cut fuel subsidies and oil exporters curb spending as a slump in crude prices takes it toll on government revenue, says IMF Managing Director Christine Lagarde. According to Lagarde, subsidizing countries "should think about reducing and phasing out the oil subsidies, taking advantage of the oil price and using public finance more wisely" while oil-exporting countries are advised to remain very cautious with public spending. The 60% drop in oil prices has already forced policy makers in Nigeria to devalue the currency, raise interest rates to a record and consider shaving the 2015 budget by 8 percent.  Lagarde claims that Nigeria should re-examine its fiscal and monetary policies immediately after elections to see if further action is needed.

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