Legal and Judicial Affairs

CBN policies place Nigeria’s economy on sound path

An Associate Professor in the Department of Economics, Adamawa State University, Dr. Gbenga Omofa says the policies put in place by the Central Bank of Nigeria, CBN under the current Governor, Mr. Godwin Emefiele has put the country on a sound path.

In an interview with Voice of Nigeria, Abuja, Dr Omofa said said modest stability had been achieved in key economic indicators, including inflation, exchange rate stability under the Emefiele’s leadership hence his reappointment for a second term in office.

The policies under his leadership has in no doubt been able to put the economy on a sound footing, for one thing we have been able to witness low rate inflation, stability in prices stability in exchange rate and we have been able to see some level of independence on the part of the CBNHonestly when you look at the performance you will see that he has put Nigeria on a good path, I don’t believe his reappointment was political, it portrays sustenance and stability in Nigeria Monetary policy, he explained.

Commendation

Dr. Omofa also commended the executive for allowing the apex bank enjoy the needed autonomy it requires to formulate policies

One of the basic things that would enhance the performance of the Central Bank is if that institution is granted some level of autonomy which I think he has enjoyed to a considerable level, he said.

The economist noted that the apex bank must monitor its interventions to deliver the needed result and pay attention to the dictates of economic factors in managing the interest rate.

Am looking forward to a situation where the Anchor Borrower Programme is looked into, sometimes you’ll find out that only about 50% gets to the beneficiary while the rest get hooked on the way, if that is looked into more funds is made available to the beneficiary and that would have a multiplier effect on the economy, Dr Omofa stressed.

He said; I am also looking at a situation though depending on the dictates of the economy where the interest would be looked into holistically in order to attract credit to the private sector for them to expand investment and reduce unemployment in Nigeria.

Intervention programmes

On the argument of the CBN’s intervention programmes in the economy, Dr. Omofa said the role of the Apex bank was not limited to monetary policy formulation alone

It also has a developmental role to play in the an economy and I think the intervention in some sectors which are considered to be of importance to the economy is a welcome idea, gone are the days the CBN is restricted to the management of banks alone and the designing of monetary policy and how it affects the economy, he added.

Source: Voice of Nigeria