Thursday, 23 March 2017

Policy Issues: Rift Deepens

Officials of a federal agency revealed yesterday that the top leaderships on both sides Minister of Finance, Mrs. Kemi Adeosun and Governor of the CBN, Mr.Godwin Emefiele, are mutually antagonistic of each other’s positions, adding that it has degenerated to a personality clash. 
Hopes of unanimity of positions and harmony of fiscal and monetary policies appear dim following an alleged demand for a review of the powers of the Central Bank of Nigeria, CBN, by the Ministry of Finance.

A newspaper had said yesterday that the Finance Minister, Mrs Kemi Adeosun, told a visiting team of legislators to cut the powers of the apex bank for what she allegedly called extensive powers which she blamed for the disconnect between Federal Government’s fiscal policies and the monetary policies.

Reacting to this, a close aide of the minister told Vanguard that the entire publication was “a hatchet job” against the minister aimed at undermining her reputation. He alluded to a collusion with CBN by those who he said, rigged the meeting.
He also stated that media presence at the meeting was masked, adding that many things the minister said were “doctored” and some totally removed from the content of the said publication, adding that a formal protest letter from the minister to the media house was underway.

Surprisingly, one of the aides of the CBN governor who pleaded anonymity told Vanguard that the apex bank was equally upset with the publication, but would not dignify it with a response. He also claimed that the Finance Ministry has been undermining the apex bank for some time now. Moreover, he claimed that the ministry was opposed to removal of the 41 items from participating in the interbank foreign exchange market. The latest discord was coming barely five days after a rapport appeared to have been forged between the authorities.

The ministry was fully involved in the pre-monetary policy committee consultative meeting held last week as prelude to the CBN’s Monetary Policy Committee, MPC, meeting of Monday and Tuesday this week. However, the outcome of the MPC meeting was at total variance with the position of the ministry, especially on the benchmark interest rate, the Monetary Policy Rate, MPR, which the MPC maintained at 14 per cent despite opposition voiced by Adeosun since third quarter of 2016. Analysts have blamed crises in the economy on policy disharmony between CBN and the Finance Ministry. They are now more worried at the growing discord with this week’s development.



Source
Vanguard

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