President Muhammadu Buhari has told African Central Bank Governors that monetary policy alone could not expand Nigerian economy.
President Buhari said this at the opening of the 2016 annual meeting of the Association of African Central Banks, in Abuja, on August 18, 2016.
The President said the Nigerian economy required new fiscal and structural policies for it to surmount its worst economic challenge in decades.
The speech by President Buhari said in part:
“We fully understand that monetary policy alone is not sufficient to bring about desired economic growth. We must carefully balance monetary and fiscal policy measures.
“For us in Nigeria, while recognizing the challenges we are confronted with and the need to surmount them, we are determined to diversify the economy away from excessive reliance on oil and other primary products.
“Consequently, we are taking measures and implementing policies that would ensure we are self-sufficient, generate massive employment for millions of our youth, and explore our untapped human and natural resources.
“We shall also embark on export and production diversification steps including investment in infrastructure; promotion of manufacturing through agro-based industries and expansion of Regional Trade.
“All these would involve integrating the informal economy into the mainstream and providing funds to Small and Medium Enterprises.
“We shall also continue, with greater determination and focus to pursue our goal of ensuring improved security for our country and its citizens, and without letting up on our fight against corruption and terrorism.
“Side by side, with economic stimulus measures, we must intensify our surveillance and give guidance to the operations of our financial institutions to reverse the trend of illicit flows of funds out of Africa.
“We should all be serious in putting place measures aimed at ensuring that the proceeds of these illicit flows are repatriated to their countries of origin with minimal bureaucratic hitches.
Nigeria’s Central Bank raised interest rates last month, and has been soaking up liquidity in order to support the naira, which has lost around 40 percent of its value since it was floated in June.
Buhari said the continent was confronted with slowing growth, weakening demand, rising inflation, restrictions to capital flows, rising debt levels, increases in exchange rate volatility and a depletion of foreign reserves.
The Central Bank Governors were meeting to discuss ways to safeguard their economies from the expected unwinding of loose monetary policies in the leading developed economies. Check this website to have a lot of fun!
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