ABUJA (Reuters) - Nigeria will need to combine
monetary policies with fiscal and structural policies in order to
overcome its worst economic crisis in decades and return to growth,
President Muhammadu Buhari said on Thursday.
Nigeria is in the middle of its worst crisis in
decades as a slump in oil revenues hammers public finances and the Naira. Gross domestic product shrank in the first quarter and the
central bank governor has said a recession is likely.
"We fully understand that monetary policy alone is
not sufficient to bring about desired economic growth," Buhari told a
meeting of African central bank governors in Abuja.
"For us in Nigeria, while we recognize the
challenges we are confronting ... we are determined to diversify the
economy away from the excessive reliance on oil and other primary
products."
Economists have criticized Buhari and the government for not doing enough to address the crisis.
Nigeria's Central Bank raised interest rates last
month, and has been soaking up liquidity in order to support the Naira,
which has lost around 40 percent of its value since it was floated in
June.
Buhari said the
continent was confronted with slowing growth, weakening demand, rising
inflation, restrictions to capital flows, rising debt levels, increases
in exchange rate volatility and a depletion of foreign reserves.
The Central Bank Governors were meeting to discuss
ways to safeguard their economies from the expected unwinding of loose
monetary policies in the leading developed economies.
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