CBN MPC Member Warns on Fiscal Spending and Inflation

During the 304th Monetary Policy Committee meeting held in February, Professor Murtala Sabo Sagagi, a member of the Central Bank of Nigeria's Monetary Policy Committee, cautioned that unchecked fiscal spending could derail Nigeria's fight against inflation. He noted that while the country has made progress in stabilizing prices and managing exchange rates, persistent economic challenges remain.

Sagagi emphasized the necessity for stronger coordination between fiscal and monetary authorities to sustain recent gains and address inflationary pressures. He pointed out that structural weaknesses in agriculture and ongoing insecurity pose significant risks to price stability and economic recovery.

The Central Bank of Nigeria has maintained a tight monetary policy stance over the past year to curb inflation, which was recorded at 15.06% in February, according to the National Bureau of Statistics. Sagagi called for improved financial oversight and resource efficiency to tackle insecurity and enhance operational effectiveness.