Osinbajo: Why Nigeria should create synergy between fiscal and monetary policy

Vice President of Nigeria, Yemi Osinbajo, said that the Federal Government needs to create synergy between fiscal and monetary policy.

Disclosed this on Tuesday while attending the 3rd Ministerial Performance Review Retreat in Abuja, he also warned that failure to do so will lead to unnecessary drawbacks in economic planning.

During the meeting, some of the economic policy challenges facing the President Buhari administration were discussed, including exchange rate management, value addition and productivity.

The Vice President also used the occasion to warn against blanket import restrictions, noting that some imported items are needed in the manufacturing process. In the same vein, he urged for coherence in government policy adaptation between MDAs to avoid conflicting policies.

What the Vice President said:
The Vice President highlighted the three challenges that we must confront going forward, saying:

“The synergy between fiscal and monetary policy, the failure of that synergy has led to unnecessary drawbacks in our economic performance and planning. What imports are eligible for foreign exchange must agree with the fiscal ambitions for manufacturing and industry. It cannot be the province of monetary policy alone or the province of fiscal policy alone.”