The Central Bank of Nigeria (CBN) has admitted positive developments in the fight against inflation.
The CBN governor, Olayemi Cardoso told leaders of the Organised Private Sector (OPS) that there is a deceleration in month-on-month inflation rates and expressed expectations for continued moderation in the coming quarters.
Cardoso recently met with leaders of the Organised Private Sector to discuss the state of the economy, monetary policy direction, and fostering collaboration.
A key focus of the meeting was the CBN’s commitment to improved communication and transparency. Cardoso emphasized the Bank’s intention to utilize forward guidance, a strategy of communicating future monetary policy actions, to enhance investor confidence – both domestic and international.
According to the CBN Governor, building trust through transparency is seen as critical to attracting investment and fostering a healthy business environment.
Cardoso addressed the recent interest rate hikes implemented by the CBN. He provided a detailed explanation of the rationale behind these decisions and the expected timeline for their impact on the economy.
The CBN governor assured the OPS that these measures are designed to achieve price stability, a core function of the central bank, while also supporting economic growth.
Cardoso acknowledged the challenges faced by the private sector in accessing foreign exchange (FX) and emphasized the Bank’s ongoing efforts to improve FX supply while ensuring a fair and balanced approach that protects the interests of all stakeholders.
The meeting underscored the CBN’s commitment to collaborate with the private sector. Discussions focused on establishing a framework for ongoing communication and engagement with OPS leadership.
This collaboration is designed to harmonize economic policy and ensure the CBN’s effective support for private sector growth, potentially in partnership with the Nigerian Economic Summit Group (NESG).
Cardoso noted the importance of private sector input in shaping economic policy.
“The private sector is a critical engine of our economy The inclusion of private sector perspectives is seen as crucial for creating a more robust and investor-friendly financial environment”, he said.
President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, raised concerns regarding the operation of the CBN’s price verification system.
He, however, proposed a collaborative approach which was agreed upon, with the OPS providing specific details and suggestions for improvement.
Other private sector leaders also addressed the need for development finance support. While acknowledging that such measures may not directly increase cash flow, the private sector leaders emphasized their value in enhancing the productive sector’s capacity to manage risks like exchange rate volatility.
The CBN’s role in facilitating trade finance and development finance through traditional institutions was also highlighted.
