CBN Dismisses Foreign Investor Hesitancy
…Increases MPR to 26.25%
By Patience Ikpeme
The Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, has assured that foreign investors are not hesitant to invest in Nigeria. He explained that it is normal for investors to come and go in financial markets.
Cardoso stressed the importance of market confidence also spoke about the efforts to make the market more transparent and to address investors’ concerns. These efforts he said have led to positive feedback and increased confidence. International bodies like Fitch have recognized these efforts by upgrading Nigeria’s rating from neutral to positive.
At the MPC meeting, key decisions were made: the Monetary Policy Rate (MPR) was raised by 150 basis points to 26.25%, the Cash Reserve Ratio stayed at 45.00%, and the Liquidity Ratio remained at 30.00% and the Committee retained the asymmetric corridor around the MPR at +100/-300 basis points. These measures aim to control inflation and maintain price stability.
Mr. Cardoso also reassured the public about the stability of the banking sector. He emphasized the need for strong banks to support Nigeria’s economic growth and to be prepared for financial uncertainties.
The Governor explained efforts to increase money sent home by Nigerians from abroad known as diaspora remittances. He acknowledged issues raised by International Money Transfer Operator (IMTOs) with regards to pricing and commissions and vowed to double remittance flows within a year by improving processes and using new technology.
Regarding fintech, the CBN he said is working to prevent illicit financial flows and money laundering. Cardoso emphasized stronger regulations and better cooperation with law enforcement. While supporting the fintech industry, the CBN wants to ensure that the public benefit and be sure of long-term stability.
