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CBN: Navigating the process for monetary stability
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By Ibrahim Modibbo
The 2025 Monetary Policy Forum, declared open by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, reinforces the apex bank’s steadfast commitment to price stability and macro-economic reforms.
The theme: “Managing the disinflation process,” resonates with the nation’s current economic realities, where inflationary pressures persist amid global and domestic shocks. The governor’s remarks reflect a balanced mix of optimism, pragmatism, and a forward looking approach to monetary policy.
His speech emphasizes the CBN’s strategic measures in taming inflation, restoring foreign exchange stability, and implementing financial sector reforms that position Nigeria for sustainable economic growth. Cardoso framed the forum as an essential intellectual platform for examining monetary policy challenges with precision. Unlike broader economic conferences, this event fosters evidence based discussions that shape policy direction. In emphasizing the need for clear communication, he acknowledges the critical role of transparency and stakeholder engagement in building confidence in monetary policy decisions.
This emphasis on dialogue is significant, particularly as monetary policy remains a powerful yet complex tool requiring careful calibration. A major take-away from the governor’s speech is his review of the economic landscape over the past year.
Nigeria has faced persistent inflationary pressures, driven by both structural challenges and monetary dynamics. As of December 2024, headline inflation stood at 34.80 percent, with core inflation remaining a major concern despite some moderation in food inflation.
The governor rightly points to domestic structural bottlenecks, exchange rate pass through effects, and energy price adjustments as factors exacerbating inflationary trends.
While acknowledging these supply-side constraints, he also recognizes the role of past liquidity injections in fueling demand driven inflation.
This candid assessment is crucial in understanding Nigeria’s inflationary progression, as it highlights the multifaceted nature of the challenge.
The governor’s remarks on liquidity injections and their unintended consequences reflect an awareness of policy trade-offs. He notes that unorthodox monetary interventions, particularly in response to theCOVID-19 pandemic, led to an excess liquidity overhang that did not translate into productivity growth.
The resulting inflationary pressures and exchange rate volatility necessitated a shift towards a more disciplined and coordinated monetary policy approach. This shift is evident in the Monetary Policy Committee’s (MPC) tightening cycle, which saw the Monetary Policy Rate (MPR) rise by a cumulative 875 basis points to 27.50 percent in 2024. Similarly, the Cash Reserve Ratio (CRR) for Other Depository Corporations (ODCs) was raised by 1,750 basis points to 50.00 percent, a bold move aimed at mopping up excess liquidity.
These decisive interventions, the governor argues, were necessary to prevent inflation from spiraling further. Counter- factual estimates suggest that without such measures, inflation could have surged to 42.81percent by the end of 2024.
This assertion stresses the importance of proactive policy responses in mitigating economic distortions.
The commitment to tightening reflects the CBN’s resolve to anchor inflation expectations while ensuring that monetary policy remains an effective tool for macro-economic stability. Beyond inflation control, the CBN has implemented critical financial sector reforms to strengthen Nigeria’s economic resilience.
The unification of multiple exchange rate windows has improved efficiency in the foreign exchange market, leading to a notable increase in remittances through International Money Transfer Operators (IMTOs).
The governor cites a79.4 percent rise in remittances to $4.18billion in the first three quarters of 2024, compared to $2.33billion in the same period of 2023.
This reform, alongside the clearance of a $7.0 billion backlog of FX commitments, has bolstered market confidence and enhanced liquidity with a rising external reserves of $40billion as of December, 2024. Another significant policy shift is the lifting of restrictions on 41items previously banned from accessing the official FX market. The reversal of this 2015 policy signals a more market-driven approach aimed at improving supply side dynamics.
Additionally, the introduction of new minimum capital requirements for banks, effective by March 2026, is a forward thinking measure designed to strengthen the financial system’s resilience. By ensuring that banks are adequately capitalized, this policy aligns with Nigeria’s ambition of becoming a $1trillion economy, reinforcing the stability and global competitiveness of the banking sector.
The governor also showcases the launch of the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy.
This initiative addresses gender disparities in financial access, empowering women through digital tools, education, and financial services. Inclusive finance remains a key pillar of sustainable economic development, and the CBN’s focus on bridging financial gaps reflects a broader commitment to equitable growth.
In a further effort to instill transparency and efficiency in the FX market, the CBN recently introduced the Nigeria Foreign Exchange Code.
This framework, built on six core principles, aims to enhance integrity, fairness, and trust within the financial ecosystem. Such measures are essential in attracting foreign investment and maintaining confidence in Nigeria’s economic reforms.
Cardoso’s speech also contextualizes Nigeria’s disinflation efforts within the global monetary landscape.
He acknowledges emerging optimism regarding potential improvements in capital flows to emerging markets, particularly as advanced economies transition toward monetary easing. However, he cautions that Nigeria’s ability to attract these inflows hinges on investor confidence in domestic reforms.
The need to deliver positive real returns on investment accentuates the importance of maintaining macro-economic stability and ensuring that inflationary trends do not erode gains.
Looking ahead, the governor stresses that the shift from unorthodox to orthodox monetary policy is crucial for restoring confidence and strengthening policy credibility. Encouragingly, early signs of progress are evident.
FX liquidity is improving, and the naira is gradually aligning with market fundamentals, creating a more predictable environment for economic activities. While acknowledging that challenges remain, Cardoso expresses confidence that Nigeria’s policies are setting the stage for sustainable economic stability.
The call for collaboration is another vital point in his remarks.
Managing disinflation requires coordinated efforts between monetary and fiscal authorities, alongside active engagement with the private sector and civil society. This alignment is necessary to anchor inflation expectations, maintain investor confidence, and ensure that economic policies translate into tangible benefits for Nigerians.
The governor reiterated the importance of a forward looking, adaptive, and resilient monetary policy framework. By prioritizing price stability, financial sector resilience, and macro-economic reforms, the CBN is laying the foundation for sustainable economic growth.
The 2025 Monetary Policy Forum thus serves as a fundamental platform for generating actionable insights that will shape Nigeria’s economic direction.
Essentially, Cardoso’s speech reflects a well calibrated approach to managing inflationary pressures while fostering economic resilience. His emphasis on disciplined monetary policy, financial sector reforms, and investor confidence corresponds with Nigeria’s broader economic aspirations. As the country navigates the complexities of disinflation, the CBN’s commitment to transparency, coordination, and policy credibility will be instrumental in achieving long-term stability.
Dr. Modibbo, a development communication scholar writes from Abuja
News
Ex-VP Atiku raises alarm over strange payment into his account
Ex-Vice President Atiku Abubakar has raised an alarm a strange person who transferred money into one of his private bank accounts, saying the incident raises serious questions about the security of his confidential banking information.
The ex-Vice President, who is the African Democratic Congress (ADC) presidential candidate, made this disclosure in a statement issued on Friday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
It was stared in the payment that they credit came from someone unknown to Atiku, with the transaction carrying the description, “Contribution Electioneering Campaign.”
The statement stressed that neither Atiku nor his campaign requested, approved or had any prior knowledge of the payment.
“Neither His Excellency nor his campaign solicited, authorised or has any knowledge of the individual or entity behind the unauthorised payment,” the statement read.
He said the transaction was particularly troubling because the account involved is a personal one whose details are not publicly known.
He questioned how an unknown individual was able to obtain the confidential account information.
“The account is a strictly private one whose details are not in the public domain. This raises a fundamental question: How did unknown persons obtain the confidential banking details of a private citizen?” it added.
The former Vice President warned that the incident raises wider concerns about the safety of Nigerians’ financial information.
If the private banking information of a former Vice President and a leading presidential candidate can be accessed and deployed for reasons yet unknown then no Nigerian’s financial privacy is safe,” the statement quoted him as saying.
He also expressed concern that the information may have been accessed through people with privileged access to sensitive financial records.
“Even more disturbing is the suspicion that such confidential information may have been obtained through persons with privileged access,” the statement said.
Atiku further warned that any confirmed breach of private banking information could expose citizens to serious security risks.
“If established, this would amount to a grave abuse of power capable of exposing the account holder to kidnappers, terrorists and fraudsters.
The former Vice President also called the attention of Nigerians and security agencies to the incident, describing it as part of what he termed a series of “suspicious activities” ahead of the 2027 general elections.
“We therefore put the Nigerian public and the security agencies on notice about this latest incident in a litany of suspicious activities leading up to next year’s general elections.”
Atiku also alleged that the incident could be part of an attempt to damage his reputation as political activities intensify ahead of the elections.
He urged Nigerians not to be distracted by what he described as “tired tactics” aimed at character assassination.
“Such desperate antics have failed before and will fail again.”
The ADC presidential candidate said he remained focused on his political agenda and his stated commitment to providing solutions to the country’s challenges.
“The Waziri Adamawa remains focused on offering Nigerians credible leadership and practical solutions to the nation’s challenges.”
News
Nigeria-China Deepen Cultural Ties With New Media Partnership
By Gloria Ikibah
Nigeria and the People’s Republic of China have strengthened their cultural and creative ties with the signing of a Content Exchange and Cooperation Agreement between the China Movie Channel (CMC) and the Nigerian Television Authority (NTA), a move expected to boost film production, media collaboration and cultural diplomacy between both countries.
The agreement was signed in Abuja during the China-Nigeria Film and Literature Symposium, which brought together diplomats, government officials, filmmakers, authors and other stakeholders from the creative industries of both countries.
Speaking at the event, Chinese Ambassador to Nigeria, Yu Dunhai, described the partnership as another milestone in the long-standing relationship between Nigeria and China, noting that literature and film have remained powerful tools for strengthening mutual understanding between peoples.
He said celebrated Nigerian writers, including Wole Soyinka, Chinua Achebe and Chimamanda Ngozi Adichie, as well as renowned Chinese authors such as Mo Yan, Yu Hua and Mai Jia, have continued to build bridges of friendship through their literary works.
According to the envoy, both countries have established themselves as global forces in visual storytelling, making the collaboration both timely and strategic.
China, he noted, currently operates more than 93,000 cinema screens and produces about 700 films annually, while Nigeria’s thriving film industry releases over 2,000 films each year.
He also pointed to the growing appreciation of each country’s productions, citing the successful screening of the Chinese film My People, My Country in Nigeria and Nigerian productions such as Lionheart and October 1 in China.
“The mutual appreciation of literature and film between the peoples of China and Nigeria is rooted in close friendship and cultural ties,” Ambassador Yu said.
He added that the initiative aligns with Chinese President Xi Jinping’s Global Civilization Initiative and President Bola Ahmed Tinubu’s vision of strengthening cross-border cultural cooperation.
The ambassador further noted that the agreement comes at a significant moment, marking the 55th anniversary of diplomatic relations between Nigeria and China, the China-Africa Year of People-to-People Exchanges and the 105th anniversary of the Communist Party of China.
Representing the Federal Government, Permanent Secretary in the Ministry of Art, Culture, Tourism and Creative Economy, Abdulkarim Ibrahim, described the agreement as a major boost for Nigeria’s creative industry and digital media ecosystem.
“This partnership will create new opportunities for professional development, technological innovation, and co-productions,” Ibrahim stated.
He praised China for its continued support through fully funded educational, technical and capacity-building programmes, which he said have benefited many Nigerian public servants and professionals in the creative sector.
According to him, as the Federal Government intensifies efforts to harness the creative industry as a driver of economic growth and employment, international collaborations such as the one with China will provide the technical expertise and global exposure needed to accelerate that vision.
Also speaking, Director-General of the Nigerian Television Authority, Salihu Abdulhamid Dembos, said the agreement will significantly improve content sharing between both countries and open new opportunities for audiences to access diverse productions.
He explained that the partnership will also promote wider accessibility through emerging technologies, including the possible integration of Artificial Intelligence-powered translation systems to enable viewers in both countries to enjoy films and television content without language barriers.
The symposium ended with interactive panel discussions involving Nigerian and Chinese filmmakers, writers and media experts, who explored opportunities for joint productions, talent development, content exchange and deeper collaboration between the creative industries of both nations.
Stakeholders expressed optimism that the agreement would not only strengthen diplomatic relations but also create fresh opportunities for cultural exchange, innovation and growth in the film and broadcast sectors.
News
Fayose inaugurated as REA board’s chair, promises unprecedented results
The Minister of Power, Mr Joseph Tegbe, on Friday inaugurated former Gov. Ayo Fayose of Ekiti, as Chairman of the Governing Board of the Rural Electrification Agency (REA).
Also inaugurated are Alhaji Ahmadu Abubakar and Mr Ilyasu Makinta and three others as members and non-executive directors, with Mr Abba Aliyu as Managing Director.
Fayose, who thanked President Bola Tinubu for finding them worthy said his mission in REA is to take the agency to greater heights by providing the needed political will.
He promised to do everything possible to ensure that the agency gets funds to achieve its long and short-term programmes for Nigerians to get electricity.
“Work has started in earnest; we are reaching out very fast and appealing to people to ensure the work is done.
“I want to use this window to assure Nigerians that your expectation about my appointment and my colleagues will not be dashed.
“We will give our best to achieve the renewed hope of President Tinubu for the country to be better for us all,‘’ he said.
He noted that a number of challenges faced in the power sector were at the grassroots.
He said that the assignment given to them was beyond providing electricity but also looking at the population of the country who need to feel the impact of the energy.
“When this happens, the people will forever be indebted to the agency,” he said
On his part, REA’s managing director thanked Tinubu for the opportunity to serve.
Aliyu promised that the agency would continue to do its best to ensure electricity gets to the served and underserved communities.
Earlier, Tegbe said the Nigeria electricity sector was moving from counting kilowatts and megawatts to powering more communities in the country.
Tegbe said this while inaugurating the Governing Board of the Rural Electrification Agency (REA) in Abuja on Friday.
The minister explained that REA occupies a unique and strategic place within Nigeria’s power sector architecture, adding that its mandate extends well beyond connecting communities to electricity.
“We are moving from just counting kilowatts and megawatts to how many communities and people were powered in the country.
“REA is fundamentally an institution for expanding opportunity.
“Every mini-grid inaugurated, every solar home system deployed, every market, school, primary healthcare centre, farm, or productive enterprise electrified represents an investment in human capital, economic inclusion, and national prosperity.
“As we continue the implementation of the Electricity Act and deepen reforms across the Nigerian Electricity Supply Industry, the role of REA has become even more significant, ‘’ he said.
The minister said that the agency serves as the bridge between national policy and grassroots impact by ensuring that “the benefits of power reforms are being felt across the country.
“Not only in our major cities but also in the remotest communities across the federation,‘’ he said.
Tegbe said that the constitution of the board was another demonstration of the unwavering commitment of
Tinubu to strengthening governance in institutions.
This, according to him, is entrenching a culture of accountability, strategic oversight, and excellence across the public sector.
The minister said that the board assumed office at a defining moment, adding that their stewardship must be guided by strategic thinking, transparency, innovation, and a steadfast commitment to provide value for money.
He said that the members were expected to provide clear policy direction, strengthen institutional governance, and safeguard public resources.
He urged them to encourage productive partnerships with development partners and the private sector, and ensure that REA remains a model public institution that delivers measurable impact.
“Most importantly, I encourage you to continually ask one fundamental question whenever decisions come before the board: “How does this improve the lives and livelihoods of ordinary Nigerians?
“If that question remains our compass, I have no doubt that the agency will continue to exceed expectations”.
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