The Central Bank Monetary policy committee ( MPC), reduced interest rate to 13.5% from 14%. This is 0.5 reduction.
This stimulant in Monetary interest digits was announced by Mr Godwin Emefiele the Governor of central bank. This is a welcome moves.
As a Policy and management expert , we believe that it could be reduce further to enhance capacity and infrastructure development . To cushion the effect of the new 30 thousand Naira minimum wages across all board.
Our assertion can be deduced because of the following;
- We have 43 Billion dollars in our foreign reserved
- Their is increase in confident of our foreign Partner
- The marginal coming down of inflation
- The average Price of Oil according to US prediction this year is 62 dollars, this will impact on foreign exchange.
Also the use of open market , to mop up liquidity during the 2019 General election by central bank.
Policy experts opined that with the reduction to 13 5% or more if need be , that it is good for domestic investment , Diversified economy and positive distance in PRS.
Now that a dollar is 358 Naira, Let relaxed Pressure in Borrowing and increase our revenue. A implementable Policy should evolve to discourage Multiple tax in the Agriculture sector.
This article was written by Frank Dikirie, a Management and Policy Consultant.