FG Says Monetary Policy Stabilising Naira

Nigeria’s Minister of Finance, Dr. Ngozi Okonjo-Iweala has said that the current monetary policy being carried out by the Central Bank of Nigeria (CBN) had helped to stabilise the exchange rate and curb inflation.

Dr. Okonjo-Iweala had said prior to last month’s Monetary Policy Committee meeting that the economy would benefit from interest rate easing.

The Monetary Policy Committee, led by the CBN Governor, Mr. Lamido Sanusi, has kept its benchmark interest rate unchanged at a record high of 12 per cent since October 2011 to bolster the naira.

Reserves increased 28 per cent to $48.4bn in the year through June 6, according to data from the CBN. The inflation rate reached 9.1 per cent in April, meeting the CBN’s target of less than 10 per cent for the fourth consecutive month.

“Nigeria needs annual economic growth of 13 per cent in order for us to solve the unemployment and other problems that we have by the year 2020,” Okonjo-Iweala said.

The economy is, however, forecast by the government to expand by 6.5 per cent this year