Botched MPC Meeting: Emefiele Calms Nerves, Insists Economy Stays Strong

BY EDMOND ODOK, ABUJA – With the Nigerian Senate yet to confirm the Monetary Policy Committees (MPC) nominees presented by President Muhammadu Buhari over three months ago, the Central Bank of Nigeria (CBN) has put on hold its statutory MPC meeting slated for Monday, January 22 and Tuesday, January 23, 2018.

The Second Schedule of the CBN Act (Section 12(5) and 54, stipulates that the MPC shall meet at least four times yearly with the quorum being six members, two of whom shall be the Governor and a Deputy Governor or two Deputy Governors.

This even as the CBN Governor, Mr Godwin Emefiele has assured that the nation’s key economic indicators are impressive and constantly moving in the right direction.

Emefiele, who allayed the fears of Nigerians and the international community over development, said the apex bank will however maintain the key monetary variables decided at the November 2017 MPC meeting with the Monetary Policy Rate (MPR) at 14 percent; CRR at 22.5 percent; Liquidity Ratio at 30 percent; and the Asymmetric corridor at +200; and -500 basis points around the MPR.

In a statement personally signed by Mr. Emefiele, CBN explained that lack of quorum as stipulated in the CBN Act 2007 has informed the decision to put off the January 2018 MPC meeting indefinitely.

The CBN governor said despite the statutory meeting not holding this month, the good news remains that major economic indices have been progressing in the right direction over the last few months.

According to Emefiele, among the positive indicators are; recovery in oil prices and boost in domestic production; Nigeria’s exit from recession in 2017; drop in inflation rate to 15.37 percent; and accretion to the country’s foreign exchange reserves, now at $40.78 billion.

Emefiele said these positive developments highlight the fact that the Nigerian economy remained strong, noting that strong investor confidence in Nigeria had attracted inflows of about $13 billion through the Investors’ and Exporters’ (I&E) window, opened by the CBN in 2017.

He said these inflows have boosted FX supply and helped to stabilize the exchange rate, adding; “We have also seen Market Capitalization of our Stock Exchange improve by 22.3 per cent from N13.21 trillion on November 30, 2017 to N16.15 trillion as at 19 January 2018, while the All-Share Index (ASI) rose by 18.8 percent from 37,944.60 to 45,092.83 over the same period.”

The apex bank boss stated that a revised schedule of the MPC meetings would be released as soon as the Bank meets the statutory requirements of membership and quorum for the MPC.

He said the CBN management would sustain the gains recorded in the economy as well as its vigilance and proactivity to ensure overall macro-economic stability throughout 2018.

The CBN found itself in the present quagmire following the Senate’s non-confirmation of Mrs Aisha Ahmad as Deputy Governor as well as Adeola Festus Adenikinju, Robert Chikwendu Asogwa, Asheikh Maidugu, and Aliyu Rafindadi Sanusi as MPC members.

The President had in October 2017 sent the nominations to the Senate for confirmation but got a cold shoulder due to the frosty relationship between the Executive and the legislature over the National Assembly’s rejection of Ibrahim Magu as the substantive Chairman of Economic Financial Crime Commission (EFCC).

NASS insiders further claimed that the Senate’s delay in treating the President list may also not be unconnected with issues raised in petitions against Deputy Governor’s nominee, Mrs Aisha Ahmad among others.