The Central Bank of Nigeria (CBN) left its benchmark interest rate unchanged at 13 percent on Tuesday, saying tight monetary policy should offset the inflationary effects of elevated spending ahead of the General Election.
The Monetary Policy Committee was also satisfied with the CBN’s attempts to stabilise the naira, which has come under major pressure in the last six months due to the collapse in oil prices.
The weakness of the naira has fuelled the illegal use of dollars in day-to-day domestic transactions, such as paying rent or school fees, Emefiele said, adding that action would be taken against transgressors.
“The CBN will very soon in due course come after them,” CBN Governor Godwin Emefiele said the told a news conference.
Emefiele said he was worried about the outlook for economic growth, but added that investment and business confidence should pick up once Africa’s most populous nation had navigated this weekend’s election.
“I’m optimistic that after the elections, confidence will improve, businesses will resume,” he said. “I’m confident the economy will be resilient.”
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