Nigeria’s central bank governor, Godwin Emefiele, said the monetary authority will continue to tight economic policy due to the inflation outlook.
Emefiele stated this at a conference on post-election agenda for monetary policy authority in Lagos last week
He said the Central Bank of Nigeria (CBN) projected that Nigerian economy will grow by 3% in 2019, higher than the 1.93% recorded in 2018 and sees inflation rising to 12% this year before moderating.
Here are post-election strategies of Nigeria’s central bank
- Inflation to rise slightly to 12% and then slope down
- Current tight policy to continue to tame rising inflation and stabilise price
- GDP is projected to rise to 3% for 2019 relatively to 1.9% in 2018
- Volatility in the crude oil market
- CBN to maintain a stable exchange rate stance given the high FX reserves
- Balance of payment is expected to maintain positive in the short term owing that oil prices recover
- Naira to dollar rate in Nigeria
- Naira to dollar rate in Nigeria
- Monetary and fiscal to put in place policies to support Agric sector vigorously
- CBN to ensure adequate support for producers of local products – especially items excluded in forex privileges.
- The CBN governor said the current government has the opportunity to diversify the Nigerian economy and must not miss it.
- CBN holds monetary policy committee meeting
Meanwhile, the Central Bank of Nigeria (CBN) will kick-off two-day monetary policy committee meeting in Abuja on Monday (today). The meeting is to set key lending rates.
Culled from. www.heritage.org
Analysts have predicted that the apex bank committee will maintain all policy rates to manage the delicate balance between growth, inflation and exchange rate stability.
Population, GDP, Inflation, Business, Trade, FDI, Corruption
FDI Inflow: $3.5 billion
Nigeria’s economic freedom score is 57.3, making its economy the 111th freest in the 2019 Index. Its overall score has decreased by 1.2 points, with a steep drop in fiscal health and lower scores on judicial effectiveness and trade freedom outweighing improvements in government integrity, business freedom, and labor freedom. Nigeria is ranked 14th among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional average but below the world average.
Although Nigerian governments often pledge to enlarge the private sector through free-market reforms, even sometimes proposing liberalization of the oil sector, the implementation of such policies has been very slow. State management of scarce resources has empowered political elites who fear that reforms will push up consumer prices, stoke political instability, and antagonize the middle classes, who rely on government-subsidized goods, and private-sector companies that depend on state handouts and protectionist policies.
A former British colony, Nigeria is Africa’s most populous country. A new constitution established civilian government in 1999. In 2015, power transferred peacefully when former military ruler Muhammadu Buhari defeated incumbent President Goodluck Jonathan. The next elections are scheduled for February 2019. Although a multinational coalition has expelled the Islamist terrorist organization Boko Haram from many of its strongholds in northeast Nigeria, frequent attacks continue. There also have been lethal outbreaks of violence between herders and farmers in the Middle Belt region. Low global oil prices have battered the petroleum-based economy. Agriculture, telecommunications, and services are contributing to modest economic growth, but more than 60 percent of Nigeria’s 170 million people still live in extreme poverty.