The Central Bank of Nigeria (CBN) has disclosed that its monetary policies aimed at curbing inflation and stabilizing the foreign exchange market are starting to show positive results. CBN Governor Olayemi Cardoso revealed that over $1 billion has flowed into the economy in recent weeks, and foreign investors are increasingly interested in investing in Nigeria.
Addressing a Joint Committee of the Senate on the State of the Nigerian Economy, Cardoso emphasized that while the CBN is committed to implementing monetary measures, there is no “magic wand” to immediately resolve the challenges facing the economy and the devaluation of the naira.
The significant depreciation of the naira against the dollar, which has occurred over the past eight months, along with soaring food inflation and resultant economic hardship, prompted the engagement between the Joint Senate Committee and key stakeholders in Nigeria’s economy.
During the briefing, tough questions were directed at Governor Cardoso regarding the fate of the naira. He candidly acknowledged that the CBN cannot single-handedly reverse the depreciation of the naira and improve the economy. He emphasized the importance of reducing the demand for dollars and foreign goods and services.
Despite not being able to provide a specific timeline for the recovery of the naira against the dollar, Cardoso highlighted the positive impact of recent monetary policies in attracting foreign investment and stabilizing the exchange rate.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stressed the need for prudent government expenditure and emphasized the importance of aligning fiscal and monetary policies.
Boosting agriculture was identified as a key strategy to achieve food security and increase foreign exchange earnings. However, it was noted that efforts must be made to support farmers and tackle food smuggling across borders.
Overall, while many lawmakers expressed optimism about the ongoing reforms, there is a collective hope that stakeholder input will contribute to easing the current economic challenges in Nigeria.