The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has reassured Nigerians that the bank’s economic reforms are yielding substantial results. Speaking at the Business Day CEO Forum 2024 on Thursday, Cardoso highlighted a 50 percent reduction in month-on-month inflation from February to May as a key achievement of the reforms.
Cardoso addressed the setting of interest rates, clarifying that they are determined by the independent Monetary Policy Committee, composed of data-driven experts who prioritize empirical evidence over emotions. “Interest rates are not set by the governor of the central bank. Interest rates are set by the Monetary Policy Committee. Thankfully, we have a committee comprised of independent, data-focused individuals who make decisions based on empirical evidence, not emotions,” he stated.
The governor emphasized the committee’s commitment to combating inflation through informed decisions. “The FCC has clearly stated their priority is to combat inflation, and they will take necessary actions to achieve this,” he added.
Cardoso also acknowledged the challenges of injecting substantial funds into the economy, including N27 trillion and N10.5 trillion through the Ways and Means framework. He credited timely rate adjustments with stabilizing the national currency against fluctuations.
Looking ahead, Cardoso expressed optimism that continued adherence to effective policies would lead to further stabilization and eventual reduction in interest rates. He projected a positive growth trajectory for Nigeria but lamented missed opportunities in the past due to inadequate measures.
During the forum, Cardoso stressed the importance of sincerity, collaboration, and transparent communication for sustainable development. He highlighted the role of transparent communication in dispelling public misunderstandings and fostering national growth. Cardoso called for ongoing improvements in monetary and fiscal communication and urged stakeholders to uphold best practices.
Additionally, he outlined the CBN’s strategies, including addressing the foreign exchange backlog, interventions in the oil and gas sectors, and plans for bank recapitalization.
Credit: NAN (Text Excluding Headline)
