The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Wednesday expressed concern over the increase in allocations to the three tiers of government, stating that there was a need for strong stabilisation programmes to freeze the growth in aggregate expenditure.
The CBN Governor, Godwin Emefiele, said the committee called on the Federation Account Allocation Committee to create savings needed to stabilise the economy against future oil price-related shocks.
He said, “The Monetary Policy Committee observed increasing monetisation of oil proceeds as evident in the growing FAAC distributions relative to the 2017 level of disbursement.
“The committee urged the government to initiate strong stabilisation programmes and to freeze the growth in its aggregate expenditure and FAAC distributions in order to create savings needed to stabilise the economy against future oil price-related shocks.”
the committee also called on the National Assembly to speedily pass the 2018 budget.
The MPC, at the end of its meeting, resolved that a quick passage of the 2018 budget would keep the fiscal policy on track and deliver the urgently needed reliefs in terms of employment and growth for the people.
The 2018 Appropriation Bill, which was submitted in October last year by President Muhammadu Buhari, has been a subject of disagreement between the Executive and the National Assembly.
Announcing the decision of the committee at the end of its two-day meeting held at the apex bank’s headquarters in Abuja, Emefiele said the committee also urged the Federal Government to offset its huge debts to contractors.
He stated that if the N2.7tn contractor debts were settled by the Federal Government, a sizable portion of the huge non-performing loans in the Deposit Money Banks would be addressed.
Emefiele said, “The committee notes with satisfaction the gradual implementation of the Economic Recovery and Growth Plan in an effort to stimulate economic recovery.
“The committee urges the quick passage of the 2018 Appropriation Bill by the National Assembly so as to keep the fiscal policy on track and deliver the urgently needed reliefs in terms of employment and growth for the citizenry.” – Punch.