Lagos Assembly Tasks NASS On Monetary Policy

Lagos State House of Assembly has urged the National Assembly to compel the Central Bank of Nigeria to strengthen the monetary policy by using the interest rate to improve and stabilise the economy.

A member of the House, Mr Gbolahan Yishawu  who moved the motion at a plenary session in Ikeja, explained that the current interest rate should be reduced to allow small businesses to thrive.

Yishawu said that any attempt to allow the current interest rate regime to continue would be detrimental to the economy.

“The treasury bills rate should be reduced to discourage banks from taking money to CBN, rather than lending them out.

“The cashless policy should be reviewed across the country with effect from 2013 and the telecom sector to provide cashless information on their networks to assist the public.

“Treasury bills with a return of 14 per cent should be discouraged. Treasury bills should not be competing with real sector.

Mr Oluyinka Ogundimu  in his contribution, said micro finances needed to be critically examined, and suggested the need to reduce the Open Market Operation, to reduce the money in circulation.