BY CHINYERE OBIORA, LAGOS – The Central Bank of Nigeria (CBN) says aligning fiscal and monetary policies remains an essential factor in strengthening the country’s financial system for sustainable economic growth.
Additionally, such crucial step will enhance regulation, and ensure resilience, especially as technological innovation and digital finance continue to expand and take deep roots in the fiscal space.
Deputy Governor, Corporate Services of the CBN, Ms. Emem Usoro, who made this submission at CBN-organized seminar for finance correspondents and Business Editors in Lagos, said better coordination of policies will promotes transparency, accountability, policy discipline and credibility, leading to improved economic outcomes.
Usoro, represented by Acting Director Corporate Communications, Mrs Hakama Sidi-Ali, said before the CBN Governor, Olayemi Cardoso-led management team came on board about two years ago, the macroeconomic environment proved quite challenging, inflation was high, and the Naira unstable due to forex scarcity.
She also pointed out that other worrying issues include the low external reserves and oil receipts, the economy facing significant Foreign exchange backlogs and government’s dependence on ways and means financing.
According to her, these are conditions that ultimately stressed the financial system and amplified the urgent need for reforms, noting that implementing well-sequenced and compliance-driven measures, including orthodox monetary policies, strengthened corporate governance, and the ongoing bank recapitalisation programme, have impacted positively in stabilizing the financial system.
The Deputy Governor explained that actions so far taken by the apex Bank have not only aligned with the Federal Government’s reform agenda but also helped to restore stability and improve key macroeconomic indicators.
Additionally, she said with the new policies in place, inflation has dropped to 16.05 per cent; the exchange rate stabilised below N1,500/$ with minimal volatility; while external reserves now exceed $46 billion, providing over 10 months of import cover.
Similarly, Usoro maintained that Monetary policy adjustments are supporting lower lending rates as inflation continues to ease, adding that these achievements reflect CBN’s commitment under the leadership of Governor Cardoso and his team, while also underscoring the importance of the media in communicating the benefits and progress of reforms to the public.
For her, effective communication will always strengthen public understanding and supports successful policy outcomes, even as she admitted that despite the progress made so far, more work is still required to improve macroeconomic fundamentals and the standard of living for Nigerians.
On the whole, the Deputy Governor said serious work at improving the nation’s financial system demands robust collaboration and synergy among policymakers, regulators, and the media.
