The National Economic Council (NEC) on Thursday asked the Central Bank of Nigeria (CBN) to introduce special monetary policy measures in the nation which would be dictated by consumer price and exchange rate.
NEC which is made up of the governors of the 36 states of the Federation and chaired by Vice President Yemi Osinbajo, called for the adoption of flexible forex measures to address persistent pressures resulting from statutory and speculative demand.
Consumer prices in Nigeria have recently been on the rise with inflation rate put at 17.6% , according to data by the National Bureau of Statistics, as Nigerians continue to groan under increased costs in the midst of recession.
Briefing journalists at State House Abuja after the meeting, Deputy Governor of Ogun State,Yetunde Onanuga said, “Further to the discussion at the Council meeting today,the Minister of Finance,Kemi Adeosun reported to the Council the balance in the Excess Crude Account in US dollars which stood at $2.453billion as at September 2016.
“At the Council meeting, another presentation was made on best options for managing the flow of the forex policy introduced by the CBN. This was a joint presentation by the Central Bank governor and the minister of Finance.The highlights are that the CBN should introduce special monetary policy in the nation as dictated by consumer price and exchange rate.
“Adoption of policy tax measures for flexible forex rate to address persistent pressures occasioned by statutory and speculative demand, improving market dynamics by CBN” she said.
Council also received briefing from Adeosun who said savings by Nigeria’s Federal Government in the Excess Crude Account rose from $2.26billion to $2.453billion in September 20, 2016 despite the recession in the country.
Onanuga said state governments were expected to intervene in the area of salaries and commercial agriculture, as this would help control inflation and stabilise other macro economic indices.
”Interventions to states in the area of salaries and commercial agriculture,the presentation also noted the following,controlling inflation is key to stabilising other macro economic indices and the current stance of monetary policy is expected to continue to help macro inflation expectations” she said.
On the bail-out funds given to states to aid in offsetting salary arrears owed workers, the Deputy Governor said NEC was told that N50billion has so far been disbursed with a window for more lending to the states.
“An update on budget support loan facility was discussed at the Council,the honourable minister of Finance reported to Council that N50billion has so far been disbursed and the facility is ongoing,”she said.
Kebbi State Governor,Atiku Bagudu also reeled out areas that needed urgent intervention from government to include more injection of funds into the economy, advance payment of license renewals,infrastructure concession,use of recovered funds to reduce funding gaps,implementation of fiscal stimulus and budget priorities.
About 24hours after the Deputy Senate President, Ike Ekweremadu called for the sack of the Minister of Finance,Kemi Adeosun and that of Budget and National Planning, Udoma Udoma, over alleged poor handling of the economy, NEC passed a vote of confidence on the economic management team of the Federal Government.
Bagudu said,”members of the council responded and acknowledged with commendation the presentation by the economic team and support the plan to steer the nation out of recession.
“In particular, it was noted that our economic managers, the National Economic Team are responding in competition with economic managers elsewhere,so its not an easy task,its a very difficult task and we crave the indulgence of our nation to give them a chance for the measures to take effect,” he added.
Elizabeth Archibong
