THE Central Bank of Nigeria (CBN) has disclosed that the Nigerian economy is currently experiencing growth challenges not previously anticipated by policy makers.

Governor of the CBN, Mallam Lamido Sanusi, made the disclosure in Abuja, on Tuesday, at a press conference held shortly after the 86th edition of the Monetary Policy Committee (MPC) meeting.

The apex bank boss said because of the growth challenges the economy was going through, the National Bureau of Statistics had revised the Gross Domestic Product (GDP) for fiscal 2012 downward to 6.61 per cent from the earlier projection of 6.85 per cent.

“The estimates revealed a real GDP growth rate of 6.48 per cent in the third quarter of 2012, up from 6.39 per cent in the second quarter, but lower than the 7.37 per cent recorded in the corresponding period of 2011,” he said.

Sanusi disclosed that the committee traced the growth challenges to the decline in the contribution of oil sector which, he said, became apparent in the last half of 2011.

Also he stressed the decline in the contribution of agriculture sector to growth since the third quarter of 2011, in spite of investment in agricultural transformation initiatives of the Federal Government.

The apex bank governor disclosed further that the growth challenges in the near to medium term would be further compounded by the recent flooding in several parts of the country, even when the cost to the economy was yet to be estimated.

The inflationary pressure which re-emerged in October, 2012 was, according to the apex bank boss, a contributory factor to the growth challenges.

According to the governor, the year-on-year headline inflation inched up to 11.7 per cent in October 2012 from 11.3 per cent in September, while food inflation increased to 11.1 per cent from 10.2 per cent in September.

In its policy measures consideration, Mallam Sanusi said the committee observed the conflicting price signals coming from the latest inflation numbers which, it said, created uncertainty as to the appropriate policy stance at this period.

However, he said since the factors underpinning the inflationary pressure were mainly structural, a monetary response may not be appropriate this time.

He said the committee, by a unanimous vote, decided to maintain the current policy stance of retaining the Monetary Policy Rate (MPR) at 12 per cent with a corridor of plus or minus 200 basis points around the mid point.
http://tribune.com.ng/index.php/front-page-news/51202-nigerian-economy-not-growing-sanusi

How did experiencing growth challenges translate to "not growing"?

These Nigerian Journo's most of them head na upside down e dey work.

An Economy is 'not growing' cos it 'grew at 6.48%' in the 3rd quarter of this year!

What wondrous Logic and show of sublime intelligence....but wait, it is the Nigerian Journalists again!

National Tribune is ACN sympathiser paper isn't it?

cosmetic economy. its growing.

No be today na

It should be growning in their swiss accounts.

yes,everybody can see it.

Hehe. This journalist did an absolutely shoddy job.

Rossike are you for real!!!!! Tribune ACN supporter!!!! I laugh in Turenchi. Indeed the present editor was Oyinlola's press secretary for 7 years in Osun. The Awolowo clan turned against ACN years ago and pitched their tent firmly with PDP this happened round about 2003 when the old AD governors lost out to PDP. Tribune and ACN is like oil and water bro, they don't mix.

ROSSIKE: National Tribune is ACN sympathiser paper isn't it?

So your job now is to castigate newspapers that report abysmal performance of government. Everyone knows that Tribune is a Pro PDP newspaper, its a shame how lost you are!

Poor journalism. Shoddy use of English language

You have to read in between the lines to understand what the article is trying to say. Hence , Very few people will be able to understand this intelligent post.

For once , it's not about women.

For Nigeria to grow , it needs foreign investment but even it's country men invest abroad rather than in Nigeria due to instability so we still have a long way to go. Only God can help Nigeria . No one man can rule and make the necessary changes that needs to be made at central govt level.

How will economy grow in any meaningful way when borrowing rate is in double digits? If you borrow from bank to start a business, you have basically chosen to become their b%tch until your business eventually crumbles. Must business people have to borrow from family and friends to invest in business? Meanwhile the banks are looking for Jimoh Ibrahims and Ifeanyi Ubahs to dash money.

We need a good credit bureau where every borrower has a single identifier number that guarantees that you cannot borrow without repayment. Also the interst rate needs to come down to single digits. Why is no one talking about how to achieve this?

isuomo: Rossike are you for real!!!!! Tribune ACN supporter!!!! I laugh in Turenchi. Indeed the present editor was Oyinlola's press secretary for 7 years in Osun. The Awolowo clan turned against ACN years ago and pitched their tent firmly with PDP this happened round about 2003 when the old AD governors lost out to PDP. Tribune and ACN is like oil and water bro, they don't mix.

I'm sure he was been sarcastic since that's the usual song we hear from NL resident PDP members whenever a report doesn't favour them.

Old stories!...Na today

Sarusi abi na sahusi, hw u wan mk em grow? Wn
1. U don introduc 1k note n stil wan introduc 5k note
2. Naija politicians don embezle our money fnsh
3. Wn wetn we dy hear na fraud ds fraud dat
4. FG dy settle people any hw
5. Etc.
sarusi! sarusi!! sahusi!!! Wake up ooooo, day don break

Apparently, Nigeria needs a proper restructing of D Economy..
And d federal Govt has alot to do concerning that.
Why won't inflation rate rise?
Are dey doing d right thing to sustain a digit inflation rate or creeping inflation?
Do they think d gross domestic product can increase by Magic?
Why can't d federal govt embark on projects dt will lead 2 a rise in GDP and a fall in d inflation rate?
They all knw d right thing to do bt dey wnt do it..
An average nigerian spends less than 2Dollars per day whch is dt bad,..
When ur citizens cnt afford a 3square meals per day nd u'r budgeting more dan 100million Naira 4 feeding. I'd av to beliv dat d food is being prepared in Heaven ..
Nigeria shld be one of d richest countries in d world bt reverse is d case.. We'v got a
Lot of oil nd a colosal Natural Resources , Bt d Govt are eating dem all..
Are dey investin well in d Agricultural sector?
In conclusion, it all lies in d hanz of D GOVT....

Say na the N5,000 note were sanusi wan introduce na im go make the economy grow?

This sanusi sef......

This topic is just like saying: Dogs like bones.
Mtcheeeew. Na today?

STALE.

Lies,lies,lies...

It's a pity many NLs are falling for this Funky Mallam's ''game of wits'! Forget all those lame statistics, Jonathan is working! The question should have been, How is the CBN (the nation's financial heartbeat) fairing under a Sanusi? He coyly introduced the economy-draining N5000 notes to placate the legislative arm of govt in order not to have his 'autonomous power stripped', he is nursing a political ambition from the north angle, NL beware! Sanusi is more dangerous than he appears!Psychopath!

SELFWORTH: Poor journalism. Shoddy use of English language

You have to read in between the lines to understand what the article is trying to say. Hence , Very few people will be able to understand this intelligent post.

For once , it's not about women.

For Nigeria to grow , it needs foreign investment but even it's country men invest abroad rather than in Nigeria due to instability so we still have a long way to go. Only God can help Nigeria . No one man can rule and make the necessary changes that needs to be made at central govt level.

Very few people, i.e. THE GREAT YOU and who else

How does Uncle Sanusi expect the Nigerian economy tO grow when more than half of his Refórm Policies sulked the ever flourishing banking industry,which used tO stand as the highest employer of labour.

The ripple effects was that the employed bankers were able to set micro businesses which in turn employed other set of labour,before Uncle Sanusi paralysed the entire system,making it the biggest swoop and largest redundancy in Nigerian labour history.

If uncle Sanusi were to be my dad,I would just simply had advised that he pen his resignation honourably,as his intended policies had done more harm than any ever existed CBN Governor.

He has all the goôd age-long banking experinces and pedigree,but,the CBN môve tò me was a total career grind for him,uncomparable to his predecessors and the likes of the Soludos'.

Just my own fifty Cents.

@Ypzilanti: you are so on point. For the Nigerian economy to grow, interest rates should be in d single digits. This would ensure that small/medium scale businesses have funds to expand their operations, which would invariably lead to d hiring of more workers.
I'm glad that there is also a proposal to reduce lending rates to d domestic airlines to single digits. This might enable the airlines to purchase newer/more efficient aircraft.

...and y is it those dat r not in "the system" dat av d interest of nigeria at heart?

I dont wanna knw d intricacies of anyth. Just deliver or leave... Can't leave load of excuses for posterity to thrive on.
God bless naija.

The apex bank boss said because of the growth challenges the economy was going through, the National Bureau of Statistics had revised the Gross Domestic Product (GDP) for fiscal 2012 downward to 6.61 per cent from the earlier projection of 6.85 per cent.

Sanusi, whats the way forward. On what parameters did you base an earlier projection of 6.85 per cent on, and what faltered those parameters. There was no mention of any tangible reasons. Reduction on agriculture input to the GDP and lower export of crude and thats it ? So does it mean our manufacturing and commercial sectors are stable...Am I right mallam ?

Billyonaire:

Sanusi, whats the way forward. On what parameters did you base an earlier projection of 6.85 per cent on, and what faltered those parameters. There was no mention of any tangible reasons. Reduction on agriculture input to the GDP and lower export of crude and thats it ? So does it mean our manufacturing and commercial sectors are stable...Am I right mallam ?

I thought billionaires like you dont really care about the economy

hw can it grow wen 1.3bn naira is nt enof for refreshment in aso rock

Who is sanusi complaining to? He is a leader and a policy maker in the financial sector of the economy. He should fix it and stop complaining to ordinary people that has no inputs in the policy making process.