…Focus on boosting economy
From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) convened a discussion between the Organised Private Sector (OPS) and its leadership to discuss strategies aimed at improving Nigeria’s financial sector.
The dialogue, which took place at the CBN’s Lagos office recently, was centered on the potential impact of comprehensive monetary policy communication and guidance on enhancing Nigeria’s image in the global investment community.
Additionally, the meeting focused on identifying effective monetary policies and interventions to foster growth in the productive sector.
Mr. Olayemi Cardoso, the CBN Governor, pointed out the significance of private sector contributions in shaping economic policy, particularly in enhancing monetary policy communication and guidance to positively impact how Nigeria is perceived by the global CFO and investing community.
Cardoso said: “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 and consistent interactions with the top leadership of the OPS 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 presented a detailed explanation of the economy’s trajectory, highlighting the deceleration of month-on-month inflation and expectations of moderation. He also said the Bank would continue improving monetary policy communication through forward guidance to domestic and global investors.
He further assured the private sector leaders of the apex bank’s commitment to building trust, ensuring price stability, and implementing monetary policies to support economic growth, improve stability in foreign exchange rates, and effectively moderate inflation.
The CBN boss assured them that despite current drawbacks, the Bank had consistently improved FX supply while protecting the interests of all parties. In addition, he stressed the importance of restoring confidence and trust in the Nigerian economy for all investors, local and foreign.
Mr. Cardoso also noted that the policy measures deployed by the CBN aim to build a transparent economy that will boost investors’ confidence and improve the country’s business environment.
The CBN presented a detailed explanation of the economy’s trajectory, the reasons behind the recent aggressive Monetary Policy Rate hikes, and the expected transmission timeline into the economy. It 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 the bank’s policies.
He said the OPS was concerned about how the price verification system is currently operated and, in agreement with the CBN, will provide it 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.
They noted that while structured development finance support may not directly increase cash supply, it enhances the capacity of the productive sector to manage risks such as exchange rate volatility. They also emphasised the importance of the role of the Central Bank of Nigeria in catalysing trade finance and development finance support through traditional institutions.
