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Strong Policy Coordination Needed to Avoid Another Recession – Emefiele

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CBN
  • Strong Policy Coordination Needed to Avoid Another Recession – Emefiele

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, on Monday said there was a need for strong policy coordination between the fiscal and monetary authorities to sustain the growth momentum following the country’s exit from recession.

The governor stated this at the opening session of a workshop titled, ‘Sustaining economic growth beyond recession exit’.

To sustain the recovery from recession, the governor said there was a need for robust policy coordination between key aspects of economic policy making.

These, according to him, include fiscal, monetary, exchange and trade policies, which must be targeted at protecting farmers to boost agricultural outputs, support local companies and enhance manufacturing and industrial capacities.

The CBN governor said the effective coordination of these policies would assist in diversifying the economy away from oil.

Represented at the event by the Deputy Governor, Corporate Services, Mr. Edward Adamu, the apex bank boss added that there was a need for policy makers to be vigilant so that the economy would not slide into recession again.

On what must be done to ensure that the country should not fall back into another recession, he said, “The first thing we need to do is to remain vigilant. Those of us who have been entrusted with leadership and policy making responsibilities must neither become complacent nor over-confident.

“We must strive to improve and sustain the same policies that have got us this far. Our import bills may have fallen but out manufacturing and agriculture sectors still have long way to go if we may attain self-sufficiency in those sectors.

“We must not be quick to discard the restrictive measures, which aided our recovery, simply because the metrics have improved.”

Emefiele said the apex bank would continue to fine-tune its policies and strategies based on the evolving developments in the economy.

“We will remain proactive in ensuring that the welfare of Nigerians is optimised at any point in time. The bank will continue to provide access to much needed credit to sectors with the potential to create jobs on a mass scale,” he added.

On the Anchor Borrowers’ Programme, the governor said the CBN would expand it to other crops other than rice, and states.

He added that the CBN was currently finalising the creation of a N500bn fund to assist manufacturers interested in non-oil exports.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Prepaid Meter is Free, Buhari Warns DisCos, Agents

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President Muhammadu Buhari once again warned Power Distributing Companies (DisCos) and their agents selling prepaid meters to electricity customers against the Federal Government directive that meter is free.

Ahmed Rufai Zakar, the Special Adviser to the President on Infrastructure, who represented Buhari at the FGN/NLC-TUC ad-hoc committee on electricity tariff stakeholders held in Ibadan, Oyo State on Wednesday, said President Buhari understood people’s concerns on issues surrounding electricity and was determined to curb and deal with unscrupulous individuals in the power sector.

He said, “We have made it very clear through the regulators direct order as well as intervention from the Ministry of Power that the meters are to be provided to Nigerians at no cost.

“Even for meters that were paid for, there is the directive from the regulator to the discos that they would need to find a way to reimburse those citizens over time.

“In cases where we find any disco or disco representative selling the meters or exploiting Nigerians to be able to get meters by paying, we would take the full measures of the law.

“The President has mandated that these meters must be free. We have also said that they must come from local manufacturers.

“This would create jobs and revive our industry.”

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Economy

Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS

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Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

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Economy

Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey

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The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

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