Calling Legislative attention to salient issues arising from the CBN Monetary Policy Committee meeting of 25th and 26th March, 2019

This brief calls for legislative attention to salient issues arising from the CBN Monetary Policy Committee meeting of 25th and 26th March, 2019. Among the key issues considered are; Domestic Output Developments and Developments in Money and Prices. The brief recommended the following to the Legislatures;  The Central Bank of Nigeria should reduce the Monetary Policy Rate (MPR) (to a single digit level) in the next Monetary Policy Meeting. This will boost the Net Domestic Credit and in turn ease the private sector borrowing cost.  NASS relevant committees should ensure that there is proper alignment and coordination between monetary and fiscal authorities in the areas of policies and programmes. For instance, the FGN’s target of job creation does not align with the CBN tight monetary policy stance, particularly with the high MPR and CRR.  The National Assembly should engage the Central Bank to ensure that it effectively performs its monitoring and supervisory function to the deposit money banks.  The National Assembly should ensure that the CBN upholds its commitment to promoting strong growth by way of encouraging credit flow to the productive sectors (especially the non-oil) of the economy.  Express legislative attention should be accorded to Bills that have the potentials to support the manufacturing and service sectors so as to sustain the current growth witnessed in the sectors.  CBN’s interventions in the real sector as well as the implementation of the Economic Recovery and Growth Plan (ERGP) by the Federal Government has been adjudged to be working by the MPC. There is need for legislative support to these laudable initiatives, mainly, through innovative legislations and oversight.  Given that rebasing the GDP will, at least, make planning and investment decisions more robust, NASS should support every effort in that regard.