The governor of the Central Bank of Nigeria, Yemi Cardoso, has reassured Nigerians that the bank’s economic reforms were yielding significant results.
Mr Cardoso said this led to a 50 per cent reduction in month-on-month inflation between February and May. He made the remarks during the interactive session at the Business Day CEO Forum 2024 on Thursday in Lagos.
Addressing the setting of interest rates, Mr Cardoso said that they were determined by the independent Monetary Policy Committee, comprised of data-driven experts who prioritise empirical evidence over emotions.
He highlighted the committee’s commitment to combating inflation through informed decisions.
“Interest rates are not set by the governor of the central bank. Interest rates are set by the Monetary Policy Committee and thankfully, we have a monetary comments policy committee comprised of independent-minded thinking people,” the CBN governor explained.
Mr Cardoso added, “These are people who are not given to emotion. What they look at is data. They look at data, and they basically go along with what the data says.
“The FCC has made it very clear that for them the major issue is telling you and I’ve also made it very clear that they will do whatever is necessary to tame inflation.”
Mr Cardoso acknowledged the challenges posed by injecting substantial funds into the economy, including N27 trillion and N10.5 trillion interventions under the Ways and Means framework.
He credited timely rate adjustments for stabilising the national currency against fluctuations.
Mr Cardoso expressed optimism that continued adherence to effective policies would lead to further stabilisation and eventual reduction in interest rates.
During the forum, Cardoso projected a positive growth trajectory for Nigeria while lamenting missed opportunities in the past due to inadequate measures. He stressed the importance of sincerity, collaboration, and transparent communication in achieving sustainable development.
The apex bank chief explained the role of transparent communication in dispelling public misunderstandings and fostering national growth.
Mr Cardoso called for ongoing monetary and fiscal communication improvements while urging stakeholders to uphold best practices.
He also outlined the CBN’s strategies, including addressing foreign exchange backlog, oil and gas sector interventions, and bank recapitalisation plans.
(NAN)
