Every country has a form of monetary policy committee. In Nigeria, the MPC meets bi-monthly. That is, every two months. In the current government, the head or chairman of the committee is the CBN governor, Olayemi Cardoso. In this article, we examine this highest economic policy decision-making body in Nigeria.
1. What's monetary policy committee
The monetary policy committee (MPC) is the highest economic policy committee of the Central Bank that makes decisions regarding the money supply of a country. The committee is a 12-man structure. These individuals are elite in the economy and understand how key economic metrics work. Every two months they meet to decide either to increase or decrease money supply.
The level of money supply affects the economy as a whole. The impact can be positive or negative. When the committee decides to increase the money supply they will reduce key indicators such as the monetary policy rate. And when it plans to reduce money supply, it increases this rate. We have discussed how the central bank controls the economy in the article below.
2. Monetary policy committee functions
The primary function of the monetary policy committee is to control the money supply of the economy. These functions are highlighted below:
- To review the economic and financial situation of the country.
- Decide on the optimal position of economic policies for short and medium terms.
- Review its monetary policy framework and ensure it is dynamic.
- Provide its decisions on monetary policies to the public using credible sources. The CBN does this through its website.
3. CBN’s MPC members
The twelve members as provided by the the CBN act (2007) are:
- The Governor of the central bank, who shall be the chairman
- Four deputy governors of the bank
- Two members from the board of directors of the bank
- Three members that are appointed by the President, and
- Two members appointed by the government of the bank.
3.1 Names of current MPC members
The current members of the committee is as follows:
- Olayemi Cardoso Governor as the Chairman
The four governors are:
- Bala Moh’d Bello DG, Corporate Services,
- Muhammad Sani. Abdullahi DG, Economic Policy,
- Philip Ikeazor DG, Financial System Stability,
- Emem Usoro DG, Operations.
Other members are stated below:
- Murtala Sabo Sagagi
- Yuguda Lamido Abubakar
- Aloysius Uche Ordu
- Aku Pauline Odinkemelu
- Mustapha Akinkunmi
- Bandele A.G. Amoo, and
- Jafiya Lydia Shehu
The Monetary Policy Committee members are individuals with experience of monetary and financial issues of a country. They ensure that the economic metrics are properly managed to keep the money supply at its optimal level.
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