Yemisi Izuora
International Monetary Fund (IMF) has asked Nigeria authorities to confirm the appointments of the Central Bank of Nigeria’s (CBN’s) board of directors and members of the Monetary Policy Committee (MPC).
The advice was contained in the IMF Article IV Consultation with Nigeria released on Wednesday.
A few directors of the Fund urged confirmation of the appointments of the CBN’s board of directors and members of the MPC in the interest of the economy.
The directors also commended the CBN’s tightening bias in 2017, which they said, should continue until inflation is within the single digit target range.
The global body recommended continued strengthening of the monetary policy framework and its transparency, with a number of directors urging consideration of a higher monetary policy rate, a symmetric application of reserve requirements, and no direct central bank financing of the economy.
The document also raised hope on the state of the economy, but made several recommendations including need for the country to revive the non-oil sector.
The Executive Board of the IMF which concluded the Article IV consultation with Nigeria on March 5 said the economy is exiting recession but remains vulnerable.
The Central Bank of Nigeria (CBN)-led MPC meeting planned for January 22nd and 23rd, 2018 failed to hold due to the failure of the Senate to approve nominees to replace eight members of the committee whose tenure expired last December.
The MPC needs six members to form a quorum, with two expected to be the CBN Governor and a Deputy Governor of the apex bank.
President Muhammadu Buhari had appointed new members for the MPC and the list of the nominees is already with the National Assembly for approval.
Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, in an emailed report to investors, confirmed that President Buhari had in October, nominated the former Executive Director of a top bank, Aisha Ahmad, as Deputy Governor of CBN to replace former Deputy Governor, Economic Policy, Sarah Alade who retired last year.
Four lecturers from National universities, including Aliyu Sanusi (Ahmadu Bello University) and Adeola Adenikinju (University of Ibadan), were also nominated by the President.
The MPC held its sixth and final meeting for 2017 from November 20 to 21 and in line with consensus expectation, the committee members overwhelmingly kept policy rates unchanged whilst emphasising on the need to consolidate on gains in external balance and domestic price stability.
The meeting was held against the backdrop of moves by the apex bank to begin phasing out accommodative monetary policy put in place to sustain growth – rising commodity prices and improving domestic macroeconomic conditions anchored by recovery in external sector variables.