RECESSION…… CBN, fiscal authorities meet over state of economy

 The economic management leaders from the Central Bank of Nigeria (CBN) and the Ministries of Finance, Budget and National Planning as well as Trade and Investment met to harmonize their policy perspectives.

In a statement signed by the CBN’s acting Director, Corporate

Communications on Sunday in Abuja, the leaders gathered at

the CBN Corporate Headquarters in Abuja at the weekend, with

the theme: “Pathway to Price Stability Conducive to Economic

Growth,”

The apex Bank Governor, Mr Godwin Emefiele, reiterated the

need for the country’s monetary and fiscal authorities to

collaborate and harmonise standpoints so as to develop the

economy rapidly.

He said the Retreat, which for the first time had in attendance a

large representation of the fiscal authorities, was coming at a

period when the country faced serious economic challenges.

He added that finding a sustainable solution required a

broadened participation of colleagues from the fiscal side.

He said that the retreat, as a brainstorming session, would

provide perspectives on certain Monetary Policy Committee

decisions.

He said it would also close the gap on the coordination

between monetary and fiscal authorities to chart a common

course and take decisions to develop the economy.

The Minister of Budget and National Planning, Senator Udoma

Udo Udoma, said both the monetary and fiscal Authorities had

no choice but to work together to guarantee the country’s

economic growth.

He posited that the pathway to lower interest rate was to

ensure monetary and fiscal authorities collaboration with the

private sector.

Also, the Minister of Finance, Mrs Kemi Adeosun, said solving

the challenges facing the Nigerian economy required

unconventional tactics.

Adeosun said that there was still a huge number of unbanked

Nigerians whose contributions to the economy remains

uncaptured.

She said the government must devise ways to bring them into

the financial mainstream. She also hinted that, based on the

current realities, the Federal Government would have to borrow

more to meet its infrastructural obligation.

On his part, the Minister of Industry, Trade and Investment Dr

Okechukwu Enelamah emphasized the need for both monetary and fiscal authorities to ensure business and investor confidence, as well as policy integrity, in order to improve on the ease of doing business in Nigeria.

According to the statement, the Deputy Governor, Economic

Policy, Central of Bank of Nigeria (CBN), Dr Sarah Alade made a

presentation entitled: “The Macroeconomic Dilemma and

Monetary Policy in Nigeria”.

She said the onus of solving the dilemma of low interest and

exchange rates as well as low inflation should not entirely be

the function of the monetary authority.

Rather, she said it necessitated the collaboration with fiscal

authorities.

According to her, there was need for deliberate policies to

ensure stability and engender growth in the economy.