Lack of fiscal directives behind current economic woes - CBN(Vanguard). -- MY TAKE

Hmmmmm 

Firstly, I want to believe the CBN governor has been in touch with the President on a regular basis on the true state of the economy especially as a professional. Because not all parameters of your economy are wise to be said in open. That was why professionally I was totally against the " I met virtually empty treasury" by PMB when he got into office. Because such a statement has a lot of negative impact on the economy in the short run especially in the area of impression before your potential investors and International community. PMB as a farmer might not have known the impact of that statement or probably just saying it to make a case. We raised this major concern over 2months ago but it generated a lot of debate especially off-line. Some even perceived us to be anti current government. But they got it all wrong. It is not about PMB but Nigeria. Gradually, the truth is coming out. 

Once again, why is the CBN talking now? You cannot be releasing funds under various guise which includes state bail out without having a strong fiscal policy that will balance the pressure from the ministry of Finance and not experience stagflation in the economy. PMB may be taking its time on the appointments of ministers due to the level of corruption in the system but there are some sensitive departments that cannot be left fallow or place on auto drive for too long. Doing so, you take a risk of having a too damaged system before repair ever begins. It is either the CBN governor is not advising the president properly or PMB just wants to stick to his gun. There are some aspects of the nation that run on speculation, perception and impression. A good example is the October 1st threat of JP Morgan . 

You may downplay the threat if you wish but if you truly understand the role of JP Morgan in international finance and why the United States made sure JP Morgan did not sink in 2008, you will not display any form of naivety. The hard comment coming from the CBN governor is coming too late if he has not been doing this one on one with the President . As a professional, you don't keep mute for too long. The ministry of Finance shouldn't have been kept silent for this long. It is not like the ministry of power or works. These are capital project ministries but the Ministry of Finance is different. Policy direction is highly needed now lest we save a lot of money but no much development. 

God bless Nigeria