Emefiele, Adeosun Allay Concern over Disharmony between CBN, Finance Ministry

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said there is no disharmony between the bank and Ministry of Finance.

Speaking at a press briefing in Washington DC, United States, Emefiele said both the monetary and fiscal authorities were working hand-in-hand to get the much desired growth needed to get Nigeria out of recession, and towards much needed growth.

In September, the Minister of Finance, Kemi Adeosun, said the fiscal authorities were in need of low interest rates, to reduce the cost of borrowing.

However, the Monetary Policy Committee (MPC) of the CBN, against Adeosun’s request, held interest rates at 14 per cent, signalling some disunity between fiscal and monetary authorities.
According to The Cable, both Adeosun and Emefiele said there was no such disharmony, as that both authorities were working to achieve the same goal of driving growth.

“Just because the monetary policy committee finds themselves in a situation where they are looking at their indicators like inflation and money supply among others, they make their decisions based on that and that is always respected.”

“I don’t see a disharmony but blown out of proportion. I am not a member of the committee and I don’t see what they do. We are all working together with one objective, which is to get the economy growing,” Adeosun said.

Emefiele corroborated Adeosun’s stance, by saying: “There is no disharmony, we are all poised to see to it that we actually achieve growth in the Nigerian economy.

“If you read my vision statement just about three days after I assumed office, one of the core issues that I raised at that conference was that we would try to pursue a low interest rate regime.

“We feel that when people are able to access loans at low interest rates, it helps improve growth, reduce unemployment, boost industrial capacity and the rest.

“Of course, I’m trying to say it is something that eventually we would have to look at, but based on the numbers that the monetary policy committee saw – based on the data that was available – the MPC felt we can pursue growth through another angle. It has nothing to do with disharmony.

“I feel it is important for me to also join the minister to confirm that there is no disharmony; we are all working together and I believe that in due course, we would achieve the growth that we badly desire for the country.”