Before a country is qualified to obtain loan from the IMF, the following conditions have to be fulfilled which are known as “Conditionalities”.
1. Reduction in grants, subventions and loans to parastatal.
2. Reduction in the overall public expenditure especially budget deficit.
3. Stoppage of non statutory transfer to state government.
4. Upward review of interest rates and reduction in sectoral allocation of credit.
5. Simplification and rationalisation of custom tariffs.
6. Review of industrial incentives and policy including the abolition of the approved user scheme.
7. Improvement in the operational review of revenue collection agents such as the customs and excise and the inland revenue services.
8. Review of the on-going projects with a view to determining their priorities.
9. Strict external debt control and management.
10. Vigorous expert drive to broaden the export base.
11. Classification of parastatal into social and economic activities for the purpose of restructuring them.
12. Adjustment of producer prices of agricultural commodities.
13. Removal of petroleum subsidy.
14. Trade liberalisation.
15. Devaluation of naira or other currencies.