Nigeria experiencing economic stagnation, inflation – Emefiele

Nigeria experiencing economic stagnation, inflation – Emefiele
July 20 05:05 2016

Governor of Central Bank of Nigeria, CBN,
Godwin Emefiele has presented the performance record of the Nigerian economy to the Senate.

According to Emefiele, the economy has faced stagnation and inflation in the last one year, adding however that the Federal Government was introducing of measures to remedy the situation.

Emefiele’s presentation began with current global
economic conditions, which has been characterized by
external shocks including the sharp decline in
commodity prices, the geopolitical tensions along
important global trading routes, and tightening of
Monetary Policy in the United States of America.

After the executive session with the CBN boss, Senate
President Bukola Saraki said, “The Senate in a closed
door session with the CBN Governor deliberated on the
new foreign exchange, management policy and the
determination of foreign exchange market by demand
and supply mechanism.

The need to continue to grow the economy and still on
focus and diversification of the economy and also as
regards the issues of some of the commercial banks.

Thereafter he answered questions from distinguished
senators on some of this topical and national economic
matters.

In a statement shortly after the meeting by the
leadership of the Senate, the CBN governor was said to
have drawn Iinkages of these occurrences with the
Nigerian economy, especially with respect to the over
70 percent decline in oil prices from about S116 per
barrel in June 2014 to about $30 per barrel earlier in
the year.

According to the statement, “The Governor’s
presentation also gave the Senators insight into the
Bank’s decisions in the Foreign Exchange Market, and
the rationale underlying the recent re-introduction of a
Flexible Exchange Rate Mechanism in Nigeria.

He also
delved into the health of the financial system and
discussed the Bank’s detailed examinations of financial
institutions as well as its zero tolerance for insider
dealings by Board and Management of deposit money
banks.

The Governor declared that the Strategic
health of Nigeria’s financial system is still strong at
this time.