The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday warned that the country’s economy could slip into recession by next year if proactive steps were not taken by the Federal Government to revive key sectors of the economy.
It also reduced the Cash Reserves Requirements for Banks from 31 per cent to 25 per cent as well as retained the Monetary Policy Rate at 13 per cent.
The committee also retained the symmetric corridor of 200 basis points around the MPR; and left the Liquidity Ratio unchanged at 30 per cent.
Addressing journalists shortly after the two-day meeting of the committee held at the CBN headquarters in Abuja, the CBN Governor, Mr Godwin Emefiele, noted that the economy had remained fragile owing to various factors.
For instance, he said the country’s Gross Domestic Product Growth Rate recorded a slow growth in the second quarter of this year, making it the second consecutive less-than-expected performance for the current fiscal year.
According to the National Bureau of Statistics, real GDP grew by 2.35 per cent in the second quarter of 2015, a significant decrease when compared with the 3.96 per cent and 6.54 per cent in the preceding quarter and corresponding period of 2014, respectively.
Real GDP growth is projected by the NBS to stabilise at 2.63 per cent in 2015, compared with the 6.22 per cent recorded in 2014.
The committee, according to the governor, however, noted that the impact of non-payment of salaries at the state and local government levels had led to reduction on consumer demand.
He said while year-on-year headline inflation continued to trend upwards, demand pressure in the foreign exchange market remained significant as oil prices continued to decline.
As a result of these developments, Emefiele said there were indications that some of the banking sector performance indicators could be stressed if these conditions worsen further.
Specifically, he expressed worry that liquidity withdrawals following the implementation of the Treasury Single Account, elongation of the tenure of state governments loans as well as loans to the oil and gas sectors could aggravate liquidity conditions in banks and impair their financial intermediation role.
These, he noted, could affect economic growth, unless some actions were immediately taken to ease liquidity conditions in the markets.
He said, “The committee noted that the overall macroeconomic environment remained fragile.
“The committee noted that liquidity withdrawals following the implementation of the TSA, elongation of the tenure of state government loans as well as loans to the oil and gas sectors could aggravate liquidity conditions in banks and impair their financial intermediation role, thus affecting economic growth, unless some actions were immediately taken to ease liquidity conditions in the markets.
“Having seen two consecutive quarters of slow growth, the committee recognized that the economy could slip into recession in 2016 if proactive steps were not taken to revive growth in key sectors of the economy.”
Source - The Sun.
Are we not in recession already?
ReplyDeleteEvery sector is dead right now.
Godwin Emefiele should say something new abeg.
Y won't we go to recession when buhari has chosen to be travelling up and down like headless chicken....
DeleteNo ministers.....is this how things works in developed countries.....hell NO!!!
Change indeed.
The last time i checked nigeria had been in recession for years. So what else is new
DeleteAnd una messiah Buhari is not doing anything about this...rather he is busy traveling up and down doing eye service...
ReplyDeleteNonsense!!...
Ok
ReplyDeleteOnly God will help Nigeria.
ReplyDeleteNetwork is so bady today.
*Larry was here*
Seen
ReplyDeleteBuhari, look into this. Things are already too hard.
ReplyDeleteNa so so probe probe and rejection of rams you dey.
Lol @rejection of rams. E go better.
DeleteWatch illiterate nonentites come and say its Buhari's fault. Meanwhile, shit dey worry me. You know all those kind shit wey dey be like egusi soup wey dey chase person enter toilet and as you sit on the bowl, it just splatters everywhere. Yeah, you read right. Watery and yellowish like a baby's.
ReplyDeleteHahahahahahaha.
Pardon me. I am observing a fast and i cant help but envy those eating at the moment.
STFU u nonentity!
DeleteWho else if not buhari
What else can anyone expect when you ve archaic, vision less and directionless govt?
ReplyDeleteADOBO (Monkey fucker). Olosi elejo were. Think positive always. Omo ale paraku. Tueh!
DeleteTaaaa...zuzuru mechie onu nsi gi ahu there. Can't he air his opinion anymore? Enulf of this cyber bullying already. Eju tabakwa gi afo dia. Nnopi.
DeleteZion baby olosi elenu pelebe. U are a bastard for interfering. Oloriibu alaye baje. Sai Baba! Tongue out!
DeleteIt is a wa. God help us.
ReplyDeletePlease this is unrelated to the post. Shoutout to Slim shady for the tips you gave yesterday. Got to the post late so i couldnt reply you. Thanks a sega mega deal.
ReplyDeleteAeegurl...
So Nigeria's economy could be worse than it already is? I thought we had hit rock bottom already .
ReplyDeleteStale news!
ReplyDeleteYou mean the economy isn't already in recession?
ReplyDeleteHehehehehe... God help this country oh.
Hehehehe. No comment
ReplyDeleteJesu shanu ooooo
ReplyDeleteWhy won't it slip into recession when they keep putting restrictions that affect businesses. Drop those requirements and watch the economy pick up. You can't carry money and travel. You can't withdraw abroad. If small businesses close more unemployed youths equals more terrorists.
ReplyDeleteBaba Go Slow Baba Daura Dullardinho. what is happening. nothing is working at all. economy too don tire for your go slow
ReplyDeleteMay God help this country.
ReplyDeleteWays to honor a miscarriage or still birth
God bless Nigeria.
ReplyDeleteThis recession is the road to recovery and Nigeria will come out stronger for it. Have a little faith people, we were living in a bubble, a very expensive unsustainable bubble. This is reality.
ReplyDeleteAnd what is your miracle worker president saying about this?
ReplyDeleteAnyway, still watching and waiting.
Say gini? When he is busy touring the whole country.
DeleteGOVT OF THE PHOTO, FOR THE PHOTO, BY THE PHOTO.
ReplyDeleteWhether you rant from now till tomorrow, it won't change Buhari from being the president. Some of you who abuse Buhari are very worse in the real world! Social media giving nonentities power to spill rubbish. Cowards. Can you stand and spilt that to his face? Even your fathers dare not!
ReplyDeletea.k.a EDWIN CHINEDU AZUBUKO said...
ReplyDelete.
Am not surprised at all shah..... #NowPlaying confident: justin bierber.....
.
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***CURRENTLY IN JUPITER***
http://thejuixreviews.blogspot.com.ng/ Hopefully something can still be done. Abeg, we are tired of hearing the bad news.
ReplyDeleteIkpuhari please while fighting "kwarucsion" do the needful.
ReplyDeleteIt's in a recession because too may Lagos and Abuja big boys are too busy swigging champagne, chasing poosay and spending money in Dubai instead of building factories and employing workers. Unemployed ppl cannot support the economy and there is no strong tourism sector in Nigeria to bring in extra money.
ReplyDeleteSlipping in to recession did I hear you say? Or Nigeria is in unofficial recession already without realising it. People have not had it so bad. No jobs, salaries not paid for months etc
ReplyDeleteIts is in recession already....
ReplyDelete