Harboursandport.com: Lagos - The Central Bank of Nigeria (CBN) said that removal of petrol subsidy and the adoption of a floating exchange rate, among other government policies, are anticipated to have positive effects on the economy in the medium-term.
The Bank
also noted that these measures are expected to enhance investor confidence,
attract capital inflows, stimulate domestic investment, and ultimately improve
the level of external reserves. Additionally, they are expected to contribute
to the stabilisation of the domestic currency.
Governor of
the CBN, Mr. Olayemi Cardoso disclosed this at the Chartered Institute of
Bankers of Nigeria (CIBN) 58th Annual Bankers’ Dinner and Grand Finale of the
Institute’s 60th Anniversary in Lagos.
 |
| L - R: Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru; Wife of CIBN President, Ngozi Opara; President/Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Dr. Ken Opara; Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso; National Treasurer, CIBN, Mrs. Mojisola Bakare-Asieru; Minister of Finance and Coordinating Minister for the Economy, Wale Edun; and 1st Vice President, CIBN, Prof. Pius Deji Olanrewaju at the 58th Annual Bankers Dinner and 60th Anniversary of CIBN in Lagos. |
He said that
attaining this substantial target necessitates sustainable and inclusive
economic growth at a significantly higher pace than current levels. The
administration has already commenced this journey through fiscal reforms,
including the removal of petrol subsidy and the unification of the foreign
exchange market rate, he stated.
Cardoso said:
“While macroeconomic indicators are valuable in assessing performance, I am
equally concerned about the well-being of the average citizen. The plight of
the hardworking masses in our urban centers and villages is a pressing concern.
We must ask ourselves if there is a potential future where a brilliant and
motivated teenager from anywhere in Nigeria could attend a future anniversary
dinner instead of being drawn into outlawed militant groups or extremist
ideologies. Likewise, recognizing the pivotal role that women play as critical
players in the economy, one cannot overlook the significant impact that
providing them with opportunities can have on Nigeria’s economic advancement.
To address this, we need to develop stronger frameworks for measuring the human
condition and ensure that policymakers and business leaders pay as much
attention to these measures as they do to macroeconomic indicators. This means
tracking indicators such as access to food, shelter, and healthcare, as well as
education and skills training opportunities.
“We must
also monitor daily wage rates in lower-income jobs, access to basic amenities
like electricity, clean water, and sanitation facilities, and availability of
public transportation. From a financial inclusion standpoint, we should track
access to financial services, including consumer credit, and ultimately, the
ability to finance home ownership on a large scale. By having accurate data on
the human condition and implementing appropriate policies based on this data,
we can expect inclusive economic growth that leads to tangible improvements in
the lives of our citizens. It is crucial to give the same visibility to human
condition data as we do to macroeconomic data to ensure that the expected
economic progress benefits the masses and helps lift them out of their current
dire conditions.
“I recently
met with a group of small business owners who expressed their concerns about
the impact of inflation on their operations. They shared stories of struggling
to maintain affordable prices for their customers while facing rising costs for
raw materials and supplies. The instability caused by inflation not only
affects their profit margins but also hampers their ability to plan for the
future. These entrepreneurs stressed the need for price stability to create a
conducive business environment that allows them to thrive and contribute to the
economy.
“In recent
discussions with individuals from different walks of life, I encountered a
young family trying to make ends meet in the face of rising prices. They shared
their worries about the erosion of their purchasing power and the challenges of
meeting basic needs within a tight budget. They emphasized the importance of
stable prices to protect the well-being of ordinary citizens and ensure a fair
distribution of resources. It is crucial that we prioritize price stability to
safeguard the livelihoods of our fellow Nigerians.
“Stabilizing
the exchange rate is another critical aspect of our efforts to promote economic
stability. I had the privilege of speaking with business owners engaged in
international trade. They recounted the difficulties of navigating the
fluctuations in the exchange rate, which often led to uncertainties and
unexpected costs. The volatility in the foreign exchange market disrupted their
planning and hindered their ability to make informed business decisions. It is
imperative that we provide transparency and create a market environment that
allows fair determination of exchange rates, ensuring stability for businesses
and individuals alike.
“To address
these challenges, the Central Bank of Nigeria is committed to achieving
monetary and price stability. This is not just a technical objective, but it
has real-life implications for the wellbeing of our citizens. Through targeted
policies, transparent market operations, and coordination between monetary and
fiscal authorities, we can ensure a more stable exchange rate, control
inflation, and create an enabling environment for businesses and individuals to
thrive.
“This is
what I, together with my team at the Central Bank have been focused on doing in
the past two months. We have critically reviewed the effectiveness of the
Central Bank’s monetary policy tools and have spent time fixing the
transmission mechanism to ensure the decisions of MPC meetings actually result
in desired objectives. For quite some time, there has been a dislocation of our
monetary transmission mechanisms rendering the MPC meetings largely
ineffective.”
No comments:
Post a Comment