The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said that Nigeria’s recovery from recession remains very fragile and must be supported to avoid another recession.
He said this after the monetary policy meeting in Abuja on Tuesday.
He said: “Available forecasts of key macroeconomic indicators point to a fragile economic recovery in the second quarter of the year, The Committee cautioned that this recovery could relapse in a more protracted recession if strong and bold monetary and fiscal policies are not activated immediately to sustain it.”
He urged economy-wide non-oil exports such as the Agricultural, manufacturing, services and light industries to work relentlessly to grow the economy of the country.
“The Committee expects that timely implementation of the 2017 Budget, improved management of foreign exchange, as well as security gains across the country, especially, in the Niger Delta and North Eastern axis, should be firmly anchored, to enhance confidence and sustainability of economic recovery”.
Emefiele expressed concerns over the increase in fiscal deficit to over N2.5 trillion in the first six months of 2017.
“The MPC noted the widening fiscal deficit of N2.51 trillion in the first half of 2017 and the growing level of government indebtedness and expressed concern about the likely crowding out effect on private sector investment”.
He stated that he is only a messenger of the committee and also called for the rapid implementation of the 2017 budget as well as maintained security within the country.