At the opening Of the 2016 annual meeting of the Association Of African Central Banks, themed Unwinding Unconventional Monetary Policies: Implications for Monetary Policy and Financial Stability in Africa”, President Muhammadu Buhari made some interesting points you should note .
1.President Buhari says that Africa is confronted with several global and domestic economic challenges. Most worrisome is the slowdown in growth; weakening global demand; rising inflation; restrictions on capital flows; rising debt levels; increased exchange rate volatility and depleting external reserves.
2.He said countries like Nigeria, Angola, South Africa, and Mozambique, that rely on only natural resources have been hit the hardest. Adding that China, a major trade and business partner to a number of African countries is currently slowing down as it remodels its economy, sparking fears of further weakening.
3. Mr. President noted that Nigeria’s Central Bank has for many years spearheaded economic stimulus measures through specific intervention programmes. He thinks these measures should be sustained through good times and through difficult times.
4.Buhari stated also that monetary policy alone is not sufficient to bring about desired economic growth. We must carefully balance monetary and fiscal policy measures.
5.Mr. President said while Nigeria “is recognizing the challenges we are confronted with and the need to surmount them, we are determined to diversify the economy away from excessive reliance on oil and other primary products. Consequently, we are taking measures and implementing policies that would ensure we are self-sufficient, generate massive employment for millions of our youth, and explore our untapped human and natural resources.”
6. He added further that Nigeria shall also embark on export and production diversification steps including investment in infrastructure; promotion of manufacturing through agro-based industries and expansion of Regional Trade. All these would involve integrating the informal economy into the mainstream and providing funds to Small and Medium Enterprises.
7.Before ending his speech, president Buhari said ” side by side, with economic stimulus measures, we must intensify our surveillance and give guidance to the operations of our financial institutions to reverse the trend of illicit flows of funds out of Africa.’