Fiscal and monetary authorities recently met to intensify efforts aimed at shoring up dwindling oil revenue and bridging the budget gap to minimise the adverse effects of low oil prices on the economy.
Speaking in Abuja at the opening of a two-day retreat themed, “Dwindling Government Revenue: Implications and Priorities for Fiscal and Monetary Policy Coordination in Nigeria”, Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, said dwindling oil prices and other commodities had diminished the current outcomes of the macro-economy.
The retreat is coming on the heels of a drastic drop in revenue, which was evident at Wednesday’s meeting of the Federation Account Allocation Committee (FAAC), during which the three tiers of government shared a paltry N390 billion, the lowest federally collectible revenue in recent memory.
Emefiele said the unsavoury development remained a daunting challenge to fiscal and monetary policy management in the country. Represented by the CBN Deputy Governor, Economic Policy, Dr. Sarah Alade, he said the ensuing scenario had the propensity to impair the country’s medium and long-term prospects if not minimised.
He said: “The knock on effect of recent global macro-economic slowdown had accentuated the urgent need for Nigeria to strengthen its economic fundamentals and attain self sufficiency so as to ensure macroeconomic stability.
“In particular, the fall in oil prices has negatively affected revenue projections and in the short-term has amplified exchange rate pressure due to a tapering of export proceeds. I wish to draw our attention to the principal objective of macroeconomic policy, which is to achieve sustainable and inclusive economic growth in the context of macro stability.