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The treasury bill scam continues to flourish

In the wake of the 2008 banking crises, the Central Bank created over N4000bn fresh Naira supply, inspite of the attendant inflationary threat, to rescue the Nigerian banking sector. Evidently, however, the bountiful profit figures declared lately by several banks would be clear testimony that, business is presently good in the sub-sector, particularly when compared with the relatively modest profit figures and systemic challenges in other industrial and commercial sub-sectors.

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CBN

The strategic blunders of CBN’s Monetary Policy Committee

The Federation Accounts Allocation Committee last week approved the sum of over N755bn for sharing among the three tiers of government. Ordinarily, the distribution of this relatively sizable revenue would elicit hope that the economy will become positively impacted, as the various tiers of government would be funded to achieve their budget expectations.

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Economy & Reserves: Between the truth and government clarifications

In apparent response to the opposition’s admonition that the nation’s economy was “gradually grinding to a halt” last year, the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, conversely painted a brighter economic picture, and sought to clarify popular misconceptions on the issue of our external reserves balance of about $45bn and the alleged discrepancies between the reported Excess Crude Account balances of the Finance Ministry and the Central Bank of Nigeria (CBN) reserves.

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Treasury bills: Can NASS stop this treasury looting?

In a report titled “FG’s Monetary Policy injurious to job creation” in the Vanguard newspaper edition of June 7, 2014, Adams Oshiomhole, the Edo State Governor described the Central Bank of Nigeria’s Monetary Policy framework as injurious to job creation. Oshiomhole observed that “current monetary strategy would discourage employers of labour from setting up businesses because interest rates are very high”; in the Governor’s words, “it is like telling someone to live long and then giving him poison”. “How can you create jobs, by pricing money out of the reach of investors in the name of achieving market stability?” Oshiomhole concluded that rapidly increasing job opportunities will not be possible without appropriate supporting infrastructure and liberal access to cheap funds.

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