The governor of the Central Bank of Nigeria CBN, Godwin Emefiele, has said that guaranteeing price stability and the growth of the nation’s economy through unconventional policies is paying off.
Latest Nigeria newspaper report that Emefiele declared this at the first Convocation Conference of Edo University, Iyamho, Auchi, on Friday.
The governor said that despite criticism from specific sectors, the bank would not be discouraged by the activities of critics. According to him, monetary policy, which was being condemned by the opposition, has so far given a good result. When we started using these tools, they were initially criticized by supporters of conventional monetary policy tools.
“Critics affirmed that our foreign exchange policies constituted exchange restrictions, rationing of the discretionary allocation of Forex based on priority categories, and practice of multiple currencies.
“While there is sufficient evidence of significant reductions in our annual import bill and an increase in non-oil exports, these critics claim that we are restricting trade and creating unfair competition.
“For our critics, the conventional monetary policy requires that to encourage national production, we must impose higher tariffs and levies.
“However, our experience in Nigeria has shown that these tools have never worked, given the various attempts of certain economic agents to undermine the success of these policies,” he explained.
Emefiele said that regardless of the views of critics, unconventional measures were well thought out and had been producing significant gains for the nation’s economy. He added that among the benefits noted was the growth of gross domestic products (GDP).
He said that after the five consecutive quarters of negative growth, beginning in the first quarter of 2016, there was a coordinated approach by fiscal and monetary authorities to support a rebound in the nation’s economy during the second quarter of 2017.
According to him, the recovery has been primarily driven by the improvement of non-oil activities, especially in the agricultural sector.
Latest Nigeria newspaper report that He said that the recovery of the oil sector reinforced agriculture as oil prices recovered in 2017. Emefiele added that the recovery had been sustained for nine consecutive quarters and was expected to strengthen in short to medium term.
The CBN governor said that as a result of the implementation of a tighter monetary policy regime, intervention programs in the agricultural and industrial sectors, as well as the improvement of foreign exchange inflows, had reduced inflation.
Latest Nigeria newspaper report that He noted that inflation began to decline from its peak of 18.7 percent in January 2017 to 11.24 percent as of September 2019.