ADVERTISEMENT
2023 General Election Count Down!
00
Days
00
Hours
00
Minutes
00
Seconds
Invalid date
Election Day!

CBN's MPC takeaways: 5 urgent issues before President Buhari in 2020

President Buhari in his office (Daily Post)
  • CBN MPC members vote to keep Nigeria’s interest rate at 13.5% to help tame uptick in inflationary pressures and support price stability.
  • The monetary authority urges President Buhari's led government to reconsider oil price benchmark in 2020 budget.
  • They call for reforms in revenue generating and security agencies in the country.

The monetary policy committee of the Central Bank of Nigeria (CBN) held its last rate-setting meeting for 2019 with few cautionary notes for the government.

ADVERTISEMENT

In a communique issued at the end of the two-day meeting in Abuja, the members of the Committee decided by a unanimous vote to retain the Monetary Policy Rate (MPR) at 13.5% and to hold all other policy parameters constant.

The Committee believed that maintaining the current policy stance will help tame uptick in inflationary pressures and support price stability.

Here are five issues the committee asked the federal government to work on:

The monetary authority advised the federal government to institutionalise reforms through policies that would automate day to day processes of key revenue generating and security agencies such as the Nigerian Customs. Members of the committee noted that these will help the government to build more fiscal buffers and ensure increased efficiency in public expenditure.

Members of the monetary authority advised the government to reconsider its 2020 budget oil price benchmark of $57 per barrel. The committee believed this will help the government to build fiscal buffers as market forecasts remain relatively weak for global oil prices.

Though the global oil price is currently trading higher than the benchmark, the price fell on Tuesday. Brent crude futures which Nigeria trade on were down 5 cents at $63.60 after rising 0.4% in the previous session.

As Nigeria signed the African Continental Free Trade Agreement (AfCTA), the monetary members urged the government to improve the investment climate and ease of doing business. They said the government must also improve working conditions for global auto manufacturers, including for aviation and rail industries to invest in the country.

The monetary authority asked the federal government to urge the Pension Commission to look away from the traditional choice of government securities to viable long-term investments in real estate, manufacturing, and agriculture.

They also called for a solid fiscal and structural policy support to place the economy on a sustainable and self-sufficient path of output growth.

The committee called for policy alignment between the monetary and fiscal authorities, to douse the adverse effects on the domestic economy in the medium term, through the reduction of importation of food and other commodities.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Bimbo Ademoye gets epic surprise package from VJ Adams on 32nd birthday

Bimbo Ademoye gets epic surprise package from VJ Adams on 32nd birthday

'Dark October': Everything we know about Aluu 4 inspired true-crime movie

'Dark October': Everything we know about Aluu 4 inspired true-crime movie

Osun: Adeleke breaks silence, reveals next move after sack

Osun: Adeleke breaks silence, reveals next move after sack

8 sperm-killing foods that dads need to avoid!

8 sperm-killing foods that dads need to avoid!

CBN raises interest rate to 17.5%

CBN raises interest rate to 17.5%

4 things to do if you have a higher sexual drive than your partner

4 things to do if you have a higher sexual drive than your partner

BBNaija's Ka3na under fire for faking pregnancy to promote new business

BBNaija's Ka3na under fire for faking pregnancy to promote new business

Mixed reactions trail Tribunal judgement in Osun

Mixed reactions trail Tribunal judgement in Osun

German firm invests Sh350 million in Kenya to make the country a leading distributor of its product

German firm invests Sh350 million in Kenya to make the country a leading distributor of its product

ADVERTISEMENT
ADVERTISEMENT