Nigeria’s Economy Was Like a Volcano Waiting to Erupt – CBN

The Central Bank of Nigeria, CBN, has likened the Nigerian economy as “a volcano waiting to erupt” had the foreign exchange pressure been left unchecked.

According to the Director of Monetary Policy Department, Moses Tule, the recent policy on foreign exchange was an edge against the imminent disaster to the country’s economy.

“A rapid fall in oil prices threatens Nigeria’s macro-economic stability because foreign exchange earnings, government revenue and domestic money supply are largely dependent on the receipts from crude oil exports,” he said.

He lamented that the economy is dwindling, even when Nigerians are overly concerned with the monetary policy, which tweak the interest and exchange rates while ignoring the fiscal policy.

According to him, the economy cannot grow without balancing both sides, as the tax system can be used to raise the required fund to balance the budget, which the government has ignored, focusing on oil.

Tule regretted that over the years, Nigerians were less concerned about what happened to the implementation of budget items, which are major source of distortion to the economy. He advised the nation to adopt the Ethiopia model of industrialisation and diversify the economy.