NEC calls for special monetary policy dictated by consumer price, exchange rate

The National Economic Council (NEC) on Thursday asked the Central Bank to introduce a special monetary policy in the nation which would be dictated by consumer price and exchange rate.

NEC which is made up of the governors often 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 demands.

Consumer prices in Nigeria have recently been on the rise withinflation 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 the State House Abuja after the meeting, Deputy Governor of Ogun State,Yetunde Onanuga said she said “Further to the discussion at the Council meeting today,the Minister of Finance,Kemi Adeosun reported to the Council the balance in 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 train forex policy introduced by the CentralBank of Nigeria. This was a joint presentation by the Governor of Central Bank 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 demands. Improving market dynamics by CBN” she said.

Council also received briefing from the Minister of Finance, Kemi 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 macroeconomic 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 macroeconomic 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 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 very difficult task and we crave the indulgence of our nation to give them a change for the measures to take effect”.