We went for the IMF meetings and when we met with investors, they asked us: ‘what is happening? We understand that there was some financial mismanage… - Sarah Alade

The inflationary pressure could be traced largely to structural factors, which included poor electricity supply, high cost of energy arising from scarcity of petroleum products, increase in the prices of imported food, raw materials and finished goods, seasonal factors, increase in electricity tariff, insurgency and insecurity in the North East, as well as pipeline vandalism by the Niger Delta militants. However, some monetary factors included exchange rate depreciation, and budget deficits in the face of dwindling oil revenues.

The best way to ensure the desired economic growth and low inflation is economic diversification with a broadening of the revenue base. Reducing the import dependency will also help to curb the demand for dollar; thereby reducing general inflationary pressure.

The threat to CBN autonomy is also disturbing. Global best practice prescribes central banks’ independence to enhance policy coherence and sturdiness born out of freedom of vision and implementation space.