CBN Outlines Economic Trajectory and Inflation Control Measures
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has provided an overview of the nation’s economic trajectory, emphasizing a deceleration in month-on-month inflation and projecting further moderation in the coming quarters.
This announcement was made by CBN Governor Mr. Olayemi Cardoso during a meeting with the Organised Private Sector (OPS).
Mr. Cardoso highlighted the policy measures implemented by the CBN to foster a transparent economy, enhance investor confidence, and improve Nigeria’s business environment. “The CBN is committed to ensuring price stability and implementing monetary policies that support economic growth,” he stated. The Governor underscored the importance of restoring confidence in the Nigerian economy for both local and international investors.
The CBN Governor explained the rationale behind the recent aggressive Monetary Policy Rate hikes and discussed the anticipated timeline for these measures to affect the economy. He assured private sector leaders that the Bank remains dedicated to building trust and ensuring stability in foreign exchange rates while effectively moderating inflation.
The CBN plans to enhance its monetary policy communication through forward guidance aimed at both domestic and global investors. This strategy is expected to provide clearer insights into the Bank’s policy directions, thereby fostering a more predictable economic environment. “Improving our communication and providing forward guidance will positively influence the global investment community’s perception of Nigeria,” Mr. Cardoso noted.
During the meeting with the OPS, the discussion centered on how broad-based monetary policy communication can impact global investment perceptions and the necessary policy interventions to boost growth in the productive sector. “The private sector is a critical engine of our economy,” Mr. Cardoso emphasized. “This meeting underscores our commitment to working collaboratively with stakeholders to create a more robust and investor-friendly financial environment.”
Stakeholders at the meeting pledged to establish a framework for ongoing collaboration and consistent interactions with the CBN’s leadership. This framework, developed in partnership with the Nigerian Economic Summit Group (NESG), aims to harmonize economic policy and ensure effective support for the private sector.
Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), praised the CBN’s open dialogue and commitment to keeping the manufacturing industry and other private sectors informed about CBN policies. He expressed concerns about the current price verification system and agreed to provide specific feedback to the CBN for improvements.
Private sector leaders at the meeting expressed concerns about the impact of macroeconomic risks on business costs across various industries. They noted that while development finance support may not directly increase cash supply, it significantly enhances the productive sector’s capacity to manage risks such as exchange rate volatility. The importance of the CBN’s role in catalyzing trade finance and development finance through traditional institutions was also emphasized.
