CBN, others close rank to mitigate credit crunch

In from Ali Smart . . .
Apparently worried over the parlous state of the economy, the Central Bank of Nigeria (CBN) has set machinery in motion to partner with other fiscal and monetary agencies to stem the downward spiral of the economy.
Giving this assurance on Thursday was the CBN Governor, Godwin Emefiele. He spoke in Abuja at the opening of the Fiscal Liquidity Assessment Committee (FLAC) workshop with participants drawn from the CBN, Office of the Accountant-General of the Federation (OAGF), the Ministry of Finance, Debt Management Office (DMO), Nigerian Customs (NCS) and the Federal Inland Revenue Service (FIRS).
Justifying the need for the partnership, Emefiele, who was represented by the Deputy Governor, Economic Policy of the CBN, Dr. Mrs Sarah Alade, said: “The fall in the price of oil and other commodities did not only diminish the current outcomes of the nation’s macro economy, it also had the propensity to impair the nation’s prospects in the medium and long term horizons.”
According to the CBN governor, “the knock on effect of the recent global macroeconomic developments has accentuated the urgent need for Nigeria to strengthen its economic fundamentals and attain self sufficiency so as to ensure macroeconomic stability.”

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The economic policy managers, he said, were especially worried because “the fall in oil prices has negatively affected revenue projections and in the short term has amplified exchange rate pressures due to a tapering of export proceeds.”
Reiterating the need for the collaboration, Emefiele said the retreat would provide “the appropriate avenue for the key managers of the economy to deliberate, brainstorm, evaluate and recommend appropriate policy actions that would increase government revenue and facilitate optimal budget execution.”
Earlier in his address, the Director, Monetary Policy Department of the CBN, Mr Moses Tule described FLAC as “a strategic committee of the CBN which provides an avenue for the monetary and fiscal authorities to interact, for the purpose of articulating policy decisions that are complimentary rather than conflicting.”

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