Godwin Emefiele, the Central Bank of Nigeria (CBN) governor, has urged Nigerians to prepare for policies which will soon be implemented by the government due to harsh economic situation, as a result of the crash of global oil prices.
Emefiele disclosed this at a press briefing at the bi-monthly Monetary Policy, MPC meeting in Abuja on Wednesday.
According to him, “It is imperative to brace up for a longer period of low government revenues from oil sources, which would necessitate hard and uncomfortable choices as the economy transits to more sustainable sources of revenue, consistent with the economic realities and strategic objectives of the country. In the circumstance, certain tradeoffs must be envisaged and duly accommodated.”
“In view of the foregoing, the imperative for consistently sound and coordinated macroeconomic policy has become inevitable. In the medium term within which monetary policy is cast, the need to allow policy to produce the desired outcomes becomes a key consideration in the policy mix.”
He said that in consideration of the headwinds in the domestic economy and the uncertainties in the global environment, the Committee decided by a unanimous vote to retain the Monetary Policy Rate, MPR at 11.0 per cent; the CRR at 20.0 per cent; Liquidity Ratio at 30 per cent; the asymmetric corridor at +200 basis points and -700 basis points.
Emefiele further said the Committee observed that the current episode of lower oil prices is projected to remain over a very long period.
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