COVID-19: CBN braces up for policy challenges
The Central Bank of Nigeria (CBN) may have launched an emergency campaigns ostensibly to rescue the Nigerian economy from the fallouts of the Coronavirus (COVID-19) induced global economic stress. Coronavirus is basically a bio-health issue but it has come to the center stage of the global economy; it has snowballed into a major economic crises.
So a new word has entered the lexicon of know economic jargons, Coronanomics. For Nigeria, an impressive performance or status in the global profile of the bio-health stands in direct opposite to what we have as Coronanomics.
The domestic economy is already on tenterhooks, bleeding on all fronts both public and private sector. As at last count oil revenue which funds the bulk of 2020 budget is heading to a red zone, spiraling every other macroeconomic indices.
Policy directorate Besides, pressures are mounting on non-oil revenue and 2020 Capital Expenditure (CAPEX); Fiscal deficit is bound to escalate without any known source of funding; Debt service is set to be in crises; GDP growth recorded in 2019 is set for a reversal; Foreign Portfolio Investments are already taking the exit doors; Pressure has come on the foreign exchange market resulting in serious depreciation of the Naira across all the segments of the market; and the nation’s Foreign Reserves is on a speed lane downwards.
Which way out? Public policy executives led by the Finance Minister, Zainab Ahmed, and the Central Bank of Nigeria, CBN, Governor, Godwin Emefiele, have set out some conversations around answering this question last week.