Nigeria experiencing economic stagnation, inflation – Emefiele

ABUJA – 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.

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.