CBN is hosting a dialogue with NESG, organized private sector – Worldstage

The Central Bank of Nigeria (CBN) has organized a dialogue between the organized private sector (OPS) and the bank’s management to develop strategies to strengthen the Nigerian financial sector.

The meeting, which was held at the Bank’s office in Lagos on Wednesday, 19 June 2024, focused on exploring how broad-based monetary policy communication and guidance can positively impact the perception of Nigeria by the global investment community and on identifying an appropriate package of monetary policies and interventions aimed at achieving enhanced development of the productive sector.

Responding to the need to improve monetary policy communication and guidance to positively impact the perception of Nigeria by the Global CFO and the investment community, CBN Governor, Mr. Olayemi Cardoso, stressed the importance of private sector input in economic policymaking. “The private sector is a key driver of our economy,” he said. “This meeting underscores our commitment to working with stakeholders to create a more robust and investor-friendly financial environment.”

The meeting participants also committed to establish a framework of cooperation and coherent interactions with the top management of the OPS to harmonize economic policies and ensure effective CBN support to the private sector in collaboration with the Nigerian Economic Summit Group (NESG).

The CBN governor also provided a detailed explanation of the economy’s trajectory, highlighting the month-on-month slowdown in inflation and expectations for moderation. He also said the Bank would continue to improve monetary policy communication through guidance to domestic and global investors.

The CBN Governor also assured private sector leaders of their commitment to building confidence, ensuring price stability and implementing monetary policy to support economic growth, improve exchange rate stability and effectively mitigate inflation. He assured that despite current shortcomings, the Bank has been consistently improving the supply of foreign exchange while protecting the interests of all parties. He further stressed the importance of restoring confidence in the Nigerian economy by all investors, local and foreign.

Mr. Cardoso also noted that the policy measures implemented by the CBN are aimed at building a transparent economy that will boost investor confidence and improve the business environment in the country.

The CBN provided a detailed explanation of the economic trajectory, the rationale for recent aggressive monetary policy rate hikes and the expected timeline for transmission to the economy. It also highlighted a month-on-month slowdown in inflation and expectations of moderate core inflation in 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 that the manufacturing industry and other organized private sectors are kept abreast of CBN policies. He stated that the OPS is concerned about the manner in which the price verification system is currently operating and in consultation with the CBN, will provide the CBN with detailed information on the concerns and suggestions for possible improvements to the system that could be implemented.

During the discussion, other private sector leaders raised concerns about the increased impact of macroeconomic risk on operating costs across industries. They noted that while structural finance for development may not directly increase the cash supply, it does increase the capacity of the productive sector to manage risks such as exchange rate volatility. They also highlighted the importance of the Central Bank of Nigeria’s role in catalyzing trade finance and supporting development finance through traditional institutions.