Nigeria Suffering From Stagflation And Inflation – CBN

GOVERNOR, Central
Bank of Nigeria, CBN, Godwin
Emefiele, on Tuesday, in a
meeting with the Senators
presented a lucid and
comprehensive account of
the performance of the
Nigerian economy in the last
one year he also told them
about the situation of the
economy and measures that
were being taken by the
Federal Government to
remedy the situation.
Emefiele CBN Governor
The CBN governor whose
appearance before the
Senators at a closed door
meeting lasted for one hour,
where he presented a lucid
and comprehensive account
of the performance of the
Nigerian economy in the last
one year.
Emefiele’s presentation
began with current global
economic conditions, which
has been characterized by
external shocks including the
sharp decline in commodity
prices, the geopoliticai
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. Is this a true
reflection of what transpired
in the closed door session.”
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. In sum, the
Governor declared that the
Strategic health of Nigeria’s
financial system is still
strong at this time.
Vanguard also gathered that
the CBN governor told the
Senators that it was
frightening that the nation
was experiencing economic
stagnation at the same time
with inflation, just as he was
said to have stressed that
ordinarily, stagnation and
inflation should not happen
at the same time, adding that
the economy was gloomy,
stagnant and worsening.