Against the background of rising inflation and the debate over whether the Central Bank of Nigeria (CBN) should hold or hike rates, members of the apex bank’s Monetary Policy Committee (MPC) have urged the regulator to step up its development finance interventions.
They made the call in their personal statements at MPC’s meeting in March, which were posted on CBN’s website yesterday. For instance, in his statement, Aliyu Ahmed said: “Since the factors currently affecting inflation in Nigeria are largely outside the control of the central bank, a practical option, in my view, will be to concentrate on output growth, while focusing on the structural impediments to distribution and storage, which in the near to medium term would have a calming effect on the domestic price level. “Current interventions should therefore be aggressive and properly targeted to have the expected impact on output growth and inflation. The fiscal authority will continue to work with the central bank to ensure stable prices, real GDP growth and low unemployment.” Also, Professor Mike Obadan stated: “We are faced with the dilemma of low and fragile growth that needs to be reversed and accelerating inflation that also needs to be tamed because of its negative impact on people’s welfare and macroeconomic stability which is required for enhanced investment and production.”