Nigeria’s Central Bank’s Monetary Policy Committee is laser-focused on curbing inflation and improving liquidity in the foreign exchange market. Following the 295th meeting in May, where the MPR was raised to 26.25% while other parameters remained unchanged, committee members emphasized the need for a tight monetary policy stance.
Member Bandele Amoo highlighted the importance of raising the benchmark rate to ensure policy pass-through to the economy, especially in the face of global inflationary trends impacting domestic prices. Emem Usoro echoed this sentiment, emphasizing the benefits of attracting more capital inflows to stabilize the exchange rate and support economic expansion.
With calls for sustained policy tightening to anchor inflation expectations, members like Lydia Jafiya and Aloysius Ordu stressed the need for broader economic reforms to attract investments and diversify the export base. The push for a balanced fiscal-monetary policy approach was emphasized by Lamido Yuguda and Muhammad Abdullahi, who underlined the importance of attracting foreign portfolio investments.
Ultimately, the committee’s goal is to foster price stability, boost reserves, and achieve sustainable growth through a coordinated fiscal and monetary policy strategy. The ongoing efforts to reform tax policies, enhance energy security, and ramp up domestic refining capacity are expected to bolster Nigeria’s economic resilience in the long run.
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