The Central Bank of Nigeria (CBN) convened a pivotal dialogue with the Organised Private Sector (OPS) on Wednesday, June 19, 2024, at the Bank’s Lagos office.
The meeting aimed to devise strategies for enhancing Nigeria’s financial sector through improved monetary policy communication and targeted interventions.
The discussions focused on how comprehensive monetary policy communication and guidance could enhance global investment community perceptions of Nigeria.
The goal was also to identify the optimal combination of monetary policies and interventions to stimulate growth in the productive sector.
In his address, CBN Governor, Mr. Olayemi Cardoso, highlighted the critical role of the private sector in shaping economic policy. “The private sector is a critical engine of our economy,” Mr. Cardoso stated. “This meeting underscores our commitment to working collaboratively with stakeholders to create a more robust and investor-friendly financial environment.”
Stakeholders at the meeting committed to establishing a framework for ongoing collaboration and consistent interactions with the top leadership of the OPS.
This partnership, in collaboration with the Nigerian Economic Summit Group (NESG), aims to harmonize economic policy and ensure the CBN’s effective support of the private sector.
Mr. Cardoso provided a detailed explanation of the economy’s trajectory, noting the deceleration of month-on-month inflation and projecting further moderation. He emphasized the Bank’s commitment to enhancing monetary policy communication through forward guidance to both domestic and global investors.
He assured private sector leaders of the CBN’s dedication to building trust, ensuring price stability, and implementing monetary policies that support economic growth.
Mr. Cardoso also discussed the importance of restoring confidence in the Nigerian economy for all investors, both local and foreign, and highlighted the CBN’s ongoing efforts to improve FX supply while safeguarding the interests of all stakeholders.
“The policy measures deployed by the CBN aim to build a transparent economy that will boost investor confidence and improve the country’s business environment,” he stated.
The CBN also provided insights into the rationale behind recent aggressive Monetary Policy Rate hikes and the anticipated transmission timeline into the economy. The discussion underscored expectations of moderation in headline inflation for the third and fourth quarters of 2024.
Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), expressed gratitude for the CBN’s open dialogue.
He highlighted the OPS’s concerns about the current operation of the price verification system and confirmed that the OPS would collaborate with the CBN to provide detailed feedback and suggestions for improvement.
Private sector leaders also voiced concerns about the elevated impact of macroeconomic risks on business costs across various industries.
They noted that while structured development finance support might not directly increase cash supply, it significantly enhances the productive sector’s capacity to manage risks such as exchange rate volatility.
The leaders emphasized the critical role of the Central Bank of Nigeria in catalyzing trade finance and development finance support through traditional institutions.
