Nigeria Will Soon Experience Economic Boom – Emefiele
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said the economy would experience a boom by the end of 2018 just as he hinted of a hike in interest rate by May 2016 at the Monetary Policy Committee (MPC) of the Apex Bank following the inflation rate that has galloped to 12.4 per cent from 11.8 per cent.
Emefiele, who made this prediction at the closing press briefing by the Nigerian delegation, noted that the economy was currently going through structural reforms and now attracting a series of investments that would translate to a major recovery in about two years.
The briefing was jointly held by the Ministry of Finance and CBN at the end of the 2016 spring meetings of the IMF-World Bank.
Emefiele noted that it would be difficult not to have a high interest rate when inflation is rising, adding however that, the CBN would intervene to ensure the effect of the high interest does not affect productivity and ultimately prices.
The CBN Governor threw more light on the currency swap with China and took time to highlight the benefit derivable from the deal.
Minister of Finance, Kemi Adeosun, clarified that in broadening the tax base; the Federal Government would emphasise on compliance initially and may later consider increase in value added tax (VAT), which is now at 5 per cent 2017.