"For Nigeria, like most developing countries, policy has often times focused on the flexible exchange rate regime and financial integration, emphasizing monetary policy independence. However, as globalization, capital flows constraints and other adverse phenomena set in, it has become imperative to seek a convergence."
Sarah Omotunde Alade is a Nigerian economist. She was acting governor of the Central Bank of Nigeria during the suspension of Sanusi Lamido Sanusi. She was appointed to the post by president Goodluck Jonathan on 20th of February 2014.
"I think for me, that was a low point. The credibility for this institution was eroded. For an institution this important to be subjected to that is bad. At the end of the day, it was not just the CBN that suffered for it, but the economy as a whole did suffer."
"The monetary policy of the Central Bank of Nigeria in recent times has continued to focus on achieving price and financial stability for economic growth and development. The persistent inflation in the last one year is an issue of concern."
"In 2016, the Nigerian economy officially entered into recession, recording two consecutive quarters of negative GDP growth rates of 0.36 per cent and 2.06 per cent in the first and second quarters, respectively. For the full year of 2016, the real GDP contracted by 1.51 per cent. Achieving price stability has remained the priority objective of most central banks. However, given the high level of poverty and unemployment in most developing countries, it has become imperative for central banks to work hard at achieving price stability with growth."
"The inflationary pressure could be traced largely to structural factors, which included poor electricity supply, high cost of energy arising from scarcity of petroleum products, increase in the prices of imported food, raw materials and finished goods, seasonal factors, increase in electricity tariff, insurgency and insecurity in the North East, as well as pipeline vandalism by the Niger Delta militants. However, some monetary factors included exchange rate depreciation, and budget deficits in the face of dwindling oil revenues."
"It is also expected that the fiscal authorities would provide direction and leadership while the monetary authorities would facilitate an enabling business environment conducive for growth. Nonetheless, the overriding mandate of the Bank continues to be price stability across the major price rates: inflation; loan interest; and foreign exchange. Stability in prices is essential for investment and consumption. Monetary policy can help through influencing short-term interest rate, but monetary policy alone is not enough to pull the country out of recession. Fiscal policy must come in and do its part to fully pull the economy out of recession."
"Throughout my period at the bank, I have one slight regret and that’s during the period I was acting governor. It was the time that the CBN was being investigated. It has never happened before that the activity of the CBN is under investigation."