….Nigeria To Borrow More To Address Infrastructure- Adeosun
Yemisi Izuora
Mrs. Kemi Adeosun, minister of finance says that the size of infrastructure gulf in Nigeria and inadequate resources will prompt more borrowing by government.
Adeosun made the comment when the economic management leaders from the Central Bank of Nigeria (CBN) and the Ministries of Finance, Budget and National Planning as well as Trade and Investment met over the weekend in Abuja to harmonise their policy perspectives.
The meeting was poised to pull the Nigerian economy out of the current crunch.
Speaking at the opening of the two-day Monetary Policy Committee (MPC) retreat with the theme: “Pathway to Price Stability Conducive to Economic Growth,” the apex Bank Governor, Mr. Godwin Emefiele, reiterated the need for the country’s monetary and fiscal authorities to collaborate and harmonize standpoints so as to develop the economy rapidly.
Mr. Emefiele, who also chairs the Monetary Policy Committee, said the MPC Retreat, which for the first time had in attendance a large representation of the fiscal authorities, was coming at a period when the country faced serious economic challenges.
He added that finding a sustainable solution required a broadened participation of colleagues from the fiscal side.
He said that the retreat, as a brainstorming session, would provide perspectives on certain Monetary Policy Committee decisions.
He said it would also close the gap on the coordination between monetary and fiscal authorities to chart a common course and take decisions to develop the economy.
In his remarks at the brainstorming session, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, said both the monetary and fiscal Authorities had no choice but to work together to guarantee the country’s economic growth.
He posited that the pathway to lower interest rate was to ensure monetary and fiscal authorities collaboration with the private sector.
Also Adeosun, and her Industry, Trade and Investment counterpart, Dr. Okechukwu Enelamah agreed that solving challenges facing the Nigerian economy required unconventional tactics.
On his part, Dr. Enelamah emphasized the need for both monetary and fiscal authorities to ensure business, market and investor confidence, as well as policy integrity, in order to improve on the ease of doing business in Nigeria.
In her presentation entitled:
“The Macroeconomic Trilemma and Monetary Policy in Nigeria,” the Deputy Governor, Economic Policy, Central of Bank of Nigeria (CBN), Dr. (Mrs.) Sarah Alade said the onus of achieving the trilemma of low interest and exchange rates as well as low inflation should not entirely be the function of the monetary authority.
Rather, she said it therefore necessitated the collaboration with fiscal authorities.
According to her, there was need for deliberate policies to ensure stability and engender growth in the economy.