Friday, February 23, 2024

CBN commits to curbing inflation through monetary policy

BY FESTUS OKOROMADU

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has revealed plans to adopt inflation targeting monetary policy framework.

He said this is part of the apex bank’s monetary outlook for 2024.

Delivering a keynote address at the 58th Annual Chartered Institute of Bankers’ of Nigeria Dinner on Friday, Cardoso said the CBN will be able to effectively manage inflation through continued tightening measures for two quarters.

“We will tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies,” he stated.

Evaluating his performance since he assumed office, Cardoso expressed optimism that policies he has implemented so far were yielding positive results.

He assured investors and the business community of stability in the short-to-medium term.

Cardoso also pledged that the CBN will strive to clear all unsettled forward foreign exchange obligations.

“We will stand by Nigeria and Nigerians. Our actions will be fully guided by principles of transparency, responsibility, and a deep commitment to Nigeria’s progress,” he promised.

The CBN Governor hinted at the need for recapitalization in the banking industry stressing that while there is stability in the sector, the banks in the country were not adequately capitalized to meet the $1 trillion economy target of the present administration.

“Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1 trillion economy in the near future? he asked rhetorically.

“In my opinion the answer is no, unless we take action,” he answered.

“Therefore, we must make tough decisions regarding capital adequacy. As a first step, the Central bank will be directing banks to increase their capital,” he said.

Cardoso applauded the CIBN at 60; while commending the institute for nurturing talent.

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