CBN To Roll Out Measures To Stem Naira Continued Depreciation

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi M. Cardoso, has outlined extensive plans to rebuild trust in the CBN, refocus on its core mandate of price and monetary stability, and collaborate with stakeholders to formulate policies for economic growth.

Delivering a keynote speech at the 2022 Bankers Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) on Thursday, Mr. Cardoso acknowledged the CBN had strayed from its primary objectives in recent years through direct interventions outside its areas of expertise.

The CBN Governor said under his leadership, the Bank will address institutional deficiencies, restore strong corporate governance, strengthen regulations and cease quasi-fiscal activities in non-core sectors, which he stated had pumped over 10 trillion naira into the economy.

According to Mr. Cardoso, the CBN will now utilize orthodox monetary policy tools, adopt an explicit inflation-targeting framework alongside fiscal authorities, and provide forward guidance to anchor expectations. He expressed confidence these measures will foster exchange rate and price stability.

The CBN Governor also announced directives for Nigerian banks to recapitalize with immediate effect to adequately service the country’s ambitious $1 trillion GDP growth target over the next 7 years. He outlined focus sectors expected to drive growth, requiring strong banking support.