The CBN is using monetary policy to address the seeming economic crisis in the country as a result of dwindling oil prices. The problem is that the measures appear too many and are to be implemented at the same time. The fiscal side of the story though not under the purview of the CBN is not clear. However, the Ministry of Finance is a member of the Monetary Policy Committee (MPC), hence the fiscal variable should be in the CBN’s reaction function. In this scenario, we need proper co-ordination of both monetary and fiscal policy. The measures portray a panic situation in an environment of increased risks and uncertainties. In an economy that relies heavily on neo-liberal economic policy, the CBN cannot do otherwise.

The Monetary Policy Committee of the Central Bank of Nigeria rose from its meeting of 25th November, 2014 to announce a string of measures ostensibly to reduce pressure on the Naira and achieve macroeconomic stability. The committee considered vulnerabilities in the domestic as well as the exposure to changes in the global economies.
In the communiqué issued by the committee, it claimed that “the domestic economy is strong and resilient in the face of strong global head winds”. The bank also projected a 7 per cent overall growth of the economy in 2014, a figure better than the 5.5% recorded in 2013. The committee equally noted that “the robust expansion in domestic output in the third quarter of 2014 against tepid growth in the global economy was anchored by the improved performance in services, agriculture, trade and industry”.

Three weeks ago, Nigeria’s 170 million populations woke up to happy news that cement is now N1, 000 per bag. For almost ten years (2005 – 2014) the price of the commodity had been hovering at N2, 500; N2, 200; N1, 750 per 50kg bag, depending on the brands and location. The sudden new price regime therefore came as unbelievable to Nigerians but news screamed the headlines while radio/TV newspapers review confirmed it. Dangote Cement Plc who led the industry to slash the price of the company’s cement by 40 per cent, said “We have pegged the Dangote 32.5 cement grade at N1, 000 per 50 kg bag, while the higher 42.5 grade is to sell for N1, 150 per bag.”

The Federal Government has said that the restoration of Ogoniland will commence in first quarter next year in line with the recommendations of the United Nations Environmental Programme (UNEP) Report vis-a-vis the multi-stakeholders group.

It was a moment of honour and pride for the Nigerian National Petroleum Corporation (NNPC) last weekend when six members of its management staff were conferred with the Fellowship of the Nigerian Society of Chemical Engineers (NSChE).