To ensure the best practice management of the naira for national prosperity is a task that must be done. Meanwhile the Monetary Policy Committee of the Central Bank of Nigeria has held 296 meetings since the inception of the apex bank as at last July, but it has not been able to achieve price stability, one of the principal objects of the CBN, especially since 1975. That is because the effects of the so-called homegrown heterodox fiscal and monetary procedures permeated the economy.
Inflationary pressures arise from FAAC monthly direct addition to M1 and M2 money stock of fiat printed naira funds in place of Federation Account oil and gas export proceeds. Recall, first, that beginning from mid-1975 till date oil and gas export proceeds have accounted for over 50 per cent of Federation Account disbursements; and second, that the Obasanjo military regime (1976-79) made the CBN to always withhold Federation Account…
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