The Central Bank of Nigeria has presented a detailed explanation of the economy’s trajectory, giving reasons for the recent aggressive Monetary Policy Rate hikes, and the expected transmission timeline into the economy.
The Central Bank Governor, Olayemi Cardoso made the presentation on Wednesday, during a dialogue with the Organised Private Sector, OPS and the Bank’s leadership to explore strategies for improving Nigeria’s financial sector.
According to a statement from CBN’s Corporate Communication Office, the meeting focused on exploring how broad-based monetary policy communication can influence the global investment community’s perception of Nigeria and on determining the right bundle of monetary policies and interventions to increase the productive sector’s growth.
Cardoso in the statement emphasised the importance of
private sector input in shaping economic policy, saying, ”the private sector is a critical engine of our economy, this meeting underscores our commitment to working collaboratively with stakeholders to create a more robust and investor-friendly financial environment.”
Stakeholders at the meeting also pledged to establish a framework for collaboration with the top leadership to harmonise economic policy and guarantee the CBN’s effective support of the private sector in partnership with the Nigerian Economic Summit Group, NESG.
The CBN Governor also said the Bank would continue improving monetary policy communication through forward guidance to domestic and global investors, assuring the private sector leaders of its commitment to building trust, ensuring price stability, and implementing monetary policies to support economic growth.
He assured them that despite current drawbacks, the Bank had
consistently improved FX supply while protecting the interests of all parties.
Cardoso stressed the importance of restoring confidence and trust in the Nigerian economy for all investors, local and foreign, saying the policy measures deployed by the CBN, aim to build a transparent economy to boost investors’ confidence and improve the country’s business environment.
The Governor also highlighted the deceleration of month-on-month inflation and expectations of moderation in headline inflation going into the third and fourth quarters of 2024.
In his remarks, the President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye appreciated the CBN’s open dialogue and interest in ensuring the manufacturing industry and other organised private sectors are abreast of CBN policies.
He said the OPS was concerned about how the price verification
the system is currently operated and, in agreement with the CBN, will provide the CBN with specific details about the concerns and suggestions for implementable improvements to the system.
During the discussions, other private sector leaders expressed concerns about the elevated impact of macroeconomic risks on business costs across various industries.
CBN meets private sector, gives reasons for recent Monetary Policy Rate hikes
