As Nigeria prepares for the 2019 general elections, the Central Bank of Nigeria CBN has cautioned politicians against excessive spending as this might lead to inflation.
Making the disclosure during CBN’s April monetary policy committee meeting in Abuja, Deputy Governor of the CBN, Aishah Ahmad said the anticipated huge fiscal spending for the proposed 2018 budget and preparations ahead of the 2019 elections may also have inflationary effects.
According to Ahmad; “This in itself would obviously call for a proactive and cautious monetary policy response to ensure there is no upward pressure on inflation. Thus, I would encourage quick passage of the 2018 appropriation bill by the national assembly, to keep fiscal policy on track, boost investment, employment and economic output for the benefit of the citizenry.
She advised that monetary policy considerations at this time should prioritize reduction in the general price level, exchange rate stability, and sustaining the fragile economic growth.