The Monetary Policy Committee of the Central Bank of Nigeria released its communique on Tuesday 20th of September at the Had Office of the CBN in Abuja.
In one of the most riveting communiques in the Emefiele era, the CBN finally came to terms with the failures of most of its policies shifting a huge portion of the blame to the Federal Government for lack of a clear-cut fiscal policy action. The CBN it appeared was finally sending a message to the FG that it was time they show up as all tools in its arsenal have been basically exhausted.
In fact, they opined that the monetary policies that they had prescribed was inadequate to address the main crux of the floundering economy. “Recognizing that the conditions which precipitated the current economic downturn were not essentially sensitive to monetary policy interventions, the MPC again renewed its call for urgent complementary fiscal policies to resuscitate production and engineer aggregate consumption.”
The CBN did not leave it at that, they went ahead to outline urgent steps that the Buhari led Federal Government needs to make to complement some of its monetary polices. Here they are.
Diversify the economy away from oil
“In particular, members underscored the imperatives of diversification of the economy away from oil into agriculture, manufacturing and services.”
Payment of Salaries
“as well as more efforts towards payment of salaries and arrears of public sector employees particularly in states and local governments to stimulate aggregate consumption, as part of the overall fiscal policy menu kit.
Increase Capital Expenditure
On the supply side, efforts must be intensified at increased capital expenditure to redress infrastructural deficits, improve the business environment and spur growth.