The Monetary Policy Committee, which is made up of the governor of the Central Bank of Nigeria and his deputy governors have praised themselves for unfurling N1.1trn in loans to productive sectors of the economy.
CBN governor, Godwin Emefiele, said in a communique at the end of its monthly two-day MPC meeting that the extra lending was the bi-product of the loan to deposit ratio enforced on commercial banks.
The said borrowings were made between June and October, he noted.
“In its consideration to hold, the MPC noted the positive outcome of actions already taken by the bank,” Emefiele said.
“These include the current policy on LDR, which has resulted in loans and advances rising by over N1.1trn between June and October 2019.
“The MPC is, therefore, of the view that sustaining the MPR at its current level is crucial for better understanding of the unfolding impetus of growth before deciding on any probable variations," he added.
The CBN boss also hinted at a strike on pension managers, saying that the MPC advised the National Pension Commission to reduce its investments on government securities and direct retirement fund administrators to place their portfolios in productive industries of the economy.
He described the rise in prices as a result of the border closure as reactionary and temporal.
The MPC said it counselled the Federal Government to consider revising the benchmark oil price for the 2020 budget downward from the $57 presented to the National Assembly.
“On crude oil price, the committee noted the lull in the futures market suggesting that prices would remain relatively weak into the foreseeable future.
“The committee, therefore, urged the Federal Government to reconsider its 2020 budget oil price benchmark of $57 to the barrel to build buffers.”
According to data released by the National Bureau of Statistics, government bonds make-up 46 per cent of the pension portfolio, while treasury bills – another security instrument, is next with 23 per cent.
These instruments are stable and have good yields.