The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Tuesday, warned the Federal Government to learn to save heavily from current improved crude oil sales for the rainy day.

CBN Governor, Mr Godwin Emefiele, who read the communique of July MPC meeting in Abuja, said the committee, while discussing the economic report, observed that as the prices of crude oil increased in 2017 and 2018, the monthly allocation to various levels of government also increased, suggesting that Federal Government was not conscious of saving for the rainy day.

He said the committee had called on the apex bank to continue to build on the progress already made in arresting the trend to sustain the moderation in food inflation.

Emefiele said the MPC noted with satisfaction the fourth consecutive quarters of growth of real Gross Domestic Product (GDP) and the positive growth outlook in the domestic economy.

“This is shown by the sustained improvement in the manufacturing and non manufacturing purchasing managers indices in the second quarter of the year,” he said.

He said the committee was, however, concerned about the liquidity impact of the 2018 expansionary fiscal budget and increasing FAAC distributions due to rising prices of crude oil as well as the build up to election related activities.

On the declining foreign reserves from $47.7 billion in May to $47.2 billion in June, Emefiele said the development had nothing to do with politics as being insinuated.

“What is happening is as a result of US Federal Reserve Bank normalisation. Since the interest rate has gone up in the US, and other advanced economies, in an attempt to stimulate their economies, these money that moved into the emerging economies are now being taken back and this means there will be so much outflow of cash than inflows. And of course we have our own share of it.

“But it must be noted that Nigeria has performed better than other emerging markets around the world, with a stabilised exchange rate because we have been able to build enough buffers to support our currency and that is why the exchange rate has remained stable.

“Countries like South Africa and others have had their currencies depreciated but the Naira remains stable at N360/$ at this time,” he added.

On currency swap update, the CBN Governor said: “China remains Nigeria largest trading partner and we are saying that those trading can be paid for using renminbi instead of dollars, because people who are importing using renmimbi we are offering some discounts since we have this soft deal with the Bank of China and we are encouraging people to embrace the use of renminbi for trade between Nigeria and China.”

PLEASE READ MORE>>>http://www.mcebisco.com.ng/2018/07/nigerian-government-not-willing-to-save.html

Same story every year.

Doing what they accused pdp of doing.

We don't have saving culture probably because the people you save for are likely to use it for their personal gains. So we squander anything that comes in, let the rainy days ahead fend for itself

Misleading headlines...
@op, change your headline to reflect on the content of the statement made

Atlanticfire:
Same story every year.

Doing what they accused pdp of doing.

Read the content first before commenting. The headline is deliberately misleading.

" Naira remains stable at N360/$ at this time,” celebrating mediocrity...d same naira was 180 against dollar b4 d dey came in...

Ground Hog day

How about learning how to make 2D animation video explainers for Nigerian small businesses and also selling on fiverr to cients around the world? Visit my training thread using my signature link.

Exactly what works in this country sef?

Hmmm. What a country we are living in. check my SIGNATURE

Save what. Our reserves are increasing and you still claim we are not saving.

Buhari will finish this country

A country without future or plans. No development road map..... Anywhere belle face.

The same story every year while expecting a different outcome

Any one noticed that nairaland pages now begin with the number 1

Another misleading headline

What are we saving, is it same Nigeria that overtook India in the world poorest people few weeks back?

Abeg sell or divide the country, Nigeria has no collective vision but just individual mentality..

I thought Mr Integrity is doing things differently? How come this is happening?

People should learn to read before drawing conclusions

This govt is just impossible. They accuse last administration of not saving and they are not doing same. The dollar being stable at #360 is still not good enough. Mismanagement of funds is sure a cankerworm in a Nigeria.

Hogwash. Useless lazy journalism.

"observed that as the prices of crude oil increased in 2017 and 2018, the monthly allocation to various levels of government also increased, suggesting that Federal Government was not conscious of saving for the rainy day."

The report is an imagination of the writer. The writer drew his/her conclusion with the emboldened part of the above statement - "suggesting that the FG was not conscious of saving for the rainy day".

See eh the CBN Governor is sounding a note of warning ahead of the election because every election period we BLOW serious money.We are yet to recover from the BLOW Money incidence of the last election and now we are here again another election.

Simply because the government of the day is filled with super looters.

FriendNG:
Save what. Our reserves are increasing and you still claim we are not saving.

This is a Fulani dollard and a Buhari worshipper. Saving on external reserves while internal debt is at its highest is intelligent economics, right?

We will cry someday

It's only to spend the govt know how to do, developement we are not seeing. What are they spending on?

Resign if your name will be dent.

Ok

Please someone should help me tell Emefiele that raining days are here already and there is no need to save for today again. FG should wait till after August break when dry season will be ushered in before thinking of saving. Ire o!

redenominate the naira like Ghana cedis first, before all these trashs.