A foremost Nigerian economist, Mr. Henry Boyo has accused the Central Bank of Nigeria of implementing faulty monetary policies that are holding the Nigerian economy to ransom. Mr. Boyo made the remarks at the ‘Nigeria Fiscal and Monetary Crisis: The Way Out,’ which was organized by the Save Nigeria Group in order to mark the one-year anniversary of the Occupy Nigeria movement. According to him, “I’ve never seen a country where the Central Bank sells Dollars to Bureau de Change,” said Mr. Boyo… We even pride ourselves with giving agricultural loans at the rate of seven per cent, whereas in serious economies, it is as low as zero per cent.”
The economist then went ahead and cited astronomical interest rates, a steadily depreciating Naira, high rate of inflation, and out-of-control of smuggling as some of the factors destabilizing the economy. He then added: “You can’t grow as a country when your Central Bank is borrowing at 12 per cent. The CBN borrowing money they don’t need.”
“How can you be using N2 trillion, over 40 per cent of budget, to pay subsidy? Inflation at over 12 per cent, there’s no way the economy can grow… How will anyone in their right senses say that they are mopping up money, and they tell you that the money will be warehoused, and they are paying 12 per cent,” Mr. Boyo asked.
No comments:
Post a Comment