January 19th,2015 Monday firstname.lastname@example.org
The current monetary policy rate of the Central Bank of Nigeria, which is pegged at 13% is hurting the economy and stifling the prospects of growth and development.
This was the view expressed by Mr Victor Ogienwonyi President, Issuing Houses Association of Nigeria at a media parley on capital market development.
Considering the fact that the inflation rate has risen to 8%, the notable market operator believed the tight monetary policy posture of the CBN, was no longer sustainable for the nation.
He highlighted that at the moment the CBN’s Standard Deposit Ratio at 10% was not encouraging lending in a country, that is known for entrepreneurship.
Speaking on the devaluation of the naira currency, Mr Ogienwonyi believed it was essential and feared that the CBN’s posture of defending it could lead to more economic challenges for Nigeria.
On the issue of the foreign exchange market, the Issuing house boss believed it was for the policy makers to focus on the necessities, that will guarantee the nation’s economic development.
Expressing high-level optimism he believed Nigeria could outdo inflation if it grows properly as an economy.
Responding to questions on why the devaluation of the 80s did not lead to the much anticipated industrial revolution in the country, Mr Ogienwonyi highlighted that the Import Substitution Strategy deployed by the government then was faulty.
He believed Nigeria should have focused on utilizing the foreign exchange market to import valuable machines and equipments, to boost its industries like China.
The Central Bank of Nigeria Monetary Policy Committee(MPC) will conclude its first meeting for the year tomorrow, where it will decide if it will retain or revisit the MPR at 13%.