Following the passage of the Central Bank of Nigeria Act (2007) into law by the National Assembly, the Monetary Policy Committee has been reconstituted to facilitate the attainment of a price stability objective and to support the Federal Government’s economic policy.
The MPC which meets quarterly, except in the event of an emergency, consists of:
- The Governor of the Bank as the Chairman;
- The four Deputy Governors of the Bank;
- Two members of the Board of Directors of the Bank;
- Three members appointed by the President and
- Two members appointed by the Governor of the Bank
The listed have the responsibility within the Bank for formulating monetary and credit policy. They are also saddled with the role of reviewing economic and financial conditions in the economy and determining the appropriate stance of policy in the short to medium term.
With the high unemployment, inflation, and general insecurity in many areas of Nigeria, the MPC is torn between retaining, reducing or increasing the current rate of MPR at 11.5%.
CEO, Asher dynamic Solutions, Muktar Mohammed told us that the major thing to consider is to see how they can end the volatility extent of the exchange rate. If this can be stable, it will attract direct investors. Seeing as 90% of what Nigerians consume are imported, we need to effectively handle the issues of inflation and exchange rate volatility.
