CBN is looking for opportunities to collaborate with the private sector

The Central Bank of Nigeria (CBN) has stressed the importance of the organized private sector to the economic development of the country.
During a policy dialogue between the Organized Private Sector (OPS) and the Bank’s management to explore strategies to strengthen Nigeria’s financial sector in Lagos, CBN Governor, Olayemi Cardoso, stressed the importance of private sector contributions in economic policymaking.

He said: “The private sector is a key driver of our economy. This meeting underscores our commitment to working with stakeholders to create a more robust and investor-friendly financial environment.”

The meeting focused on exploring how broad-based monetary policy communication and guidance can positively impact the global investment community’s perception of Nigeria and identifying an appropriate package of monetary policies and interventions to enhance the growth of the manufacturing sector.

Stakeholders at the meeting committed to establish a framework of cooperation and coherent interactions with the OPS top management 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 growth trajectory, highlighting the deceleration in inflation on a monthly basis and expectations for its moderation. He also said the Bank would continue to improve monetary policy communications through forward guidance to domestic and global investors.

The CBN Governor assured private sector leaders of the Bank’s commitment to building confidence, ensuring price stability and implementing monetary policies that support economic growth, improve exchange rate stability and effectively contain inflation.

He also assured that despite the current shortcomings, the Bank is 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 from all investors, local and foreign.

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

The CBN provided a detailed explanation of the economy’s growth trajectory, the reasons for the recent aggressive monetary policy interest rate increases, and the expected timing of transmission of changes to the economy. He also highlighted a slowdown in monthly inflation and expectations for moderate overall inflation in the third and fourth quarters of 2024.

In his remarks, the President of the Manufacturers Association of Nigeria (MAN), 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 the Bank’s policies.

He stated that OPS is concerned about the way the price verification system currently works. During the discussion, other private sector leaders expressed concerns about the increased impact of macroeconomic risk on operating costs across industries.

The business community also noted that while structured development finance support may not directly increase the cash supply, it increases the capacity of the manufacturing sector to manage risks such as exchange rate volatility.

They stressed the importance of the CBN’s role in catalysing trade finance and development financial support through traditional institutions.