“CBN Charts Strategic Shift, Embraces Limited Advisory Roles for Economic Growth Support”


In a notable development, Nigeria’s central bank, as conveyed by Governor Olayemi Cardoso, is strategically recalibrating its role to assume a more circumscribed stance, pivoting away from direct fiscal interventions towards “more limited advisory roles” in consonance with the governmental economic growth agenda. Cardoso, articulating this shift in monetary strategy, underscored the prior methodology’s deleterious impact, where the conflation of monetary and fiscal policies impeded the institution’s adept management of inflation and foreign reserves, as explicated in his dispatched communiqué.

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Under the previous leadership of ousted Governor Godwin Emefiele until June, the central bank sustained the artificial strength of the naira and pursued unconventional monetary policies, chiefly manifest in liquidity provisions to money markets through interventions. Cardoso emphasized the imperative to retract the central bank from direct development finance interventions, emphasizing a pivot towards advisory roles geared at buttressing economic growth.

Governor Cardoso’s pronouncement aligns with the prevailing economic challenges facing Nigeria, characterized by double-digit inflation, currency depreciation, and a staggering national debt. Candidly addressing these hurdles, Cardoso disabused the notion of a panacea, stating that the central bank lacks a “magic wand” to remedy the extant economic predicaments. Nevertheless, he proffered a multifaceted approach to bolstering growth, encompassing initiatives such as catalyzing institutions and financial products to fortify nascent economic sectors, broadening financial inclusion, and orchestrating collaborations with multilateral stakeholders to bolster government and private sector endeavors.

Against the backdrop of President Bola Tinubu’s audacious reforms, including the termination of a burdensome petrol subsidy and the removal of restrictions on foreign exchange trading, Cardoso, who assumed office in September, outlined the central bank’s commitment to fortifying corporate governance, reinstating confidence, and realigning with core functions to rehabilitate its credibility within the financial landscape.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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