Presidency seeks fiscal-monetary policy harmonisation – Guardian

For the first time, the Federal Government last week, admitted that the nation’s economic challenges cannot be reversed with monetary policy, without corresponding fiscal support.

Besides, the expected policy boost needed to engender desired level of growth needed to take “our people out of poverty” will remain short with the fiscal policy lag.

President Muhammadu Buhari made the observations at the 2016 Governors Symposium and the 39th Ordinary Session of the Assembly of Governors of the Association of African Central Banks (AACB), in Abuja, with the theme “Unwinding Unconventional Monetary Policies: Implications for Monetary Policy and Financial Stability in Africa”.

Meanwhile, Nigeria and other commodity dependent economies have lost more than $40 billion to capital flight due to uncertainties, especially as the ongoing rout in the prices of commodities, particularly the crude oil, heightened.

The nation’s capital market lost a host of foreign investors, who pulled out their stakes in flight for safety as they lost confidence in foreign exchange flows with the dwindling prices of the country’s major revenue earner- crude oil.