N350bn Stimulation Fund: Financial Expert Tasks FG On Proper Planning | Independent Newspapers Limited
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N350bn Stimulation Fund: Financial Expert Tasks FG On Proper Planning

Posted: Mar 29, 2016 at 3:00 am   /   by   /   comments (0)

Mr. Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria (CIBN), on Monday, urged the Federal Government to specify strategic areas that the proposed N350 billion stimulation fund would be injected into.

Unegbu said in Lagos there must be proper planning before the injection of such funds in the economy, to avoid excess liquidity.

He said that there must be proper clarity and planning where the funds would be channelled into for economic growth and development.

Unegbu said that government should work closely with the Central Bank of Nigeria (CBN) to streamline fiscal and monetary policies.

He explained that there must not be any disconnection between the apex bank and government in policy management.

Unegbu, however, expressed concern at the disparity between the CBN’s Monetary Policy Committee (MPC) and the Federal Government in the management of the economy.

He stated that the major reason for increasing interest rate to 12 percent from 11 percent was to reduce excess liquidity.

According to him, government should work closely with the CBN to avoid a policy somersault.

The Federal Government announced its readiness to inject a total of N350 billion into the economy in the next quarter.

Mrs Kemi Adeosun, Minister of Finance, said that part of the money would help to offset the debt owed to local contractors, who had laid-off their workers due to lack of funds.