Former governor of Central Bank of Nigeria and Emir of Kano, Muhammadu Sanusi has commended the decision of the CBN and the Monetary Policy Committee to retain the interest rate and liquidity ratio amidst calls for its reduction.
Sanusi noted that it takes great courage to take such decisions which he claimed shows the apex bank as reclaiming its independence by not succumbing to pressure from different quarters.
The economist turned traditional ruler gave this commendation at the official launch of the Nigerian Banking Report 2016 by Afrinvest West Africa Limited held on Wednesday at Muson Centre, Lagos.
Taking a cursory look at the state of the nation’s economy and possible way forward, Sanusi agreed that fall in global oil price and the activities of the Niger Delta Avengers hit the economy too hard.
He pointed that the Buhari led administration inherited a big mess and that the country is now paying the price for the recklessness and profligacy of our past leaders.
According to him, Nigeria was spending above 80 percent of its revenue on recurrent expenditures during the oil boom. This, to him, was a wrong economic model.
On way forward, Sanusi advised that there must be right economic model to get out of the present situation. He argued that the country must move on to investment-driven model.
Reflecting on the theme for the event, the former CBN governor believed that the nation must continue to woo foreign investors into the country. He stressed the fact that inflow of dollars into the country by investors is the surest way to strengthen the naira.
The Minister of Finance, Nike Adeosun had advocated a reduction in interest rate while the Monetary Policy Committee were meeting on Monday and Tuesday. However, in a communiqué signed by the CBN governor, Godwin Emefiele at the end of the meeting, the MPC members voted to retain MPR at 14.00 percent, CRR at 22.5 percent, Liquidity ratio at 30.00 percent and Asymmetric Window at +200 and – 500 basis points around MPR.