President Muhammadu Buhari on Thursday expressed the resolve of his administration to combine monetary policies with fiscal and structural policies in order to overcome Nigeria’s worst economic crisis in decades and return the country to growth.
Nigeria is in the middle of its worst crisis in decades as a slump in oil revenues has affected public finances and the naira. Gross domestic product shrank in the first quarter of the year with the Central Bank governor, Godwin Emefiele saying a recession is likely.
Addressing a meeting of African central bank governors in Abuja, Buhari said, “We fully understand that monetary policy alone is not sufficient to bring about desired economic growth.
“For us in Nigeria, while we recognise the challenges we are confronting … we are determined to diversify the economy away from the excessive reliance on oil and other primary products.”
The President noted that the continent was confronted with slowing growth, weakening demand, rising inflation, restrictions to capital flows, rising debt levels, increases in exchange rate volatility and a depletion of foreign reserves.
The central bank governors are meeting in Nigeria’s capital to deliberate on ways to safeguard their economies from the expected unwinding of loose monetary policies in the leading developed economies.