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Senate Refuses to Budge on The Approval of Monetary Policy Committee Nominees

Proshare

Tuesday, January 16, 2018 /10:55AM / FDC 

With just two weeks left to the first meeting of 2018, it appears that the Senate may not consider President Buhari’s nominees for the vacant positions on the Monetary Policy Committee (MPC). As of last November, eight positions on the 12-member committee are vacant. 

The Senate resolved to suspend the confirmation process of all Presidential nominees not specifically mentioned in the 1999 constitution, even though they are provided for in the establishment Acts of several government agencies. This inaction is a reaction to the Vice-President, Yemi Osinbajo, stating that the Chairman of the Economic and Financial Crimes Commission (EFCC) does not require the Senate’s approval. 

The Senate’s position regarding the confirmation of the nominees may remain unchanged until the deadlock regarding the nomination and non-confirmation of the EFCC’s Acting Chairman Mr. Ibrahim Magu, is resolved.  

This lack of quorum could lead to a postponement of the MPC meeting, scheduled for the end of January. 

Analysis & Outlook 
The MPC meeting is unlikely to hold in January 2018. This will hinder the Central Bank of Nigeria’s (CBN) ability to set interest rates and formulate monetary policies that will ensure naira stability, curb inflation and promote economic growth. In the absence of any significant change in policy, the interbank interest rates should remain relatively unchanged in the coming month. 

Proshare Nigeria Pvt. Ltd.

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