Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has underscored the critical importance of managing Inflation to stabilise Nigeria’s economy. During his address at the 30th Nigerian Economic Summit in Abuja, Cardoso emphasised that rising goods and services threaten the nation’s economic progress, affecting households and businesses. He believes managing inflation is essential for promoting Investment and preserving consumer buying power, particularly during economic instability. Cardoso pointed out that while monetary policies are crucial for ensuring stability, they cannot effectively replace the essential economic strategies required to tackle inflation.
Also, he emphasised that neglecting to manage inflation would discourage investment and negatively impact the national economic outlook. However, he admitted that addressing inflation will require difficult compromises, as rising prices continue to be driven by factors such as a depreciating naira, subsidy removal, the global pandemic, and disruptions in supply chains. The CBN governor stressed the importance of a coordinated approach between fiscal and monetary policies, particularly given the country’s high debt-servicing costs, which have constrained the government’s ability to promote growth.
CBN affirmed its dedication to openness and partnership with stakeholders.
Furthermore, he cautioned that monetary tightening alone would not curb inflation, calling on fiscal authorities to ensure that public spending is efficient and well-targeted. He recognised the public’s worries regarding increasing food and fuel costs and argued that immediate sacrifices are crucial for achieving long-lasting price stability. He emphasised that curbing inflation would establish a basis for ongoing growth and job opportunities, which is vital for alleviating Poverty and addressing inequality. He assured the public that the CBN is dedicated to openness and collaboration with different parties to ensure that the nation’s economic recovery continues progressing, even in the face of rising inflation.
In his address, Cardoso also took a moment to reflect on past failures to diversify the national economy, attributing many of the country’s current challenges to missed opportunities. He expressed confidence that the region is on the right path, noting that international financial institutions, such as the European Union (EU), and rating agencies have acknowledged the progress the country is making. He advocated for ongoing initiatives to broaden the economic base and control inflation to ensure lasting stability.
The government’s tough economic decisions received praise during the event.
During the same summit, Jamie Dimon, Chairman and Chief Executive of J.P. Morgan Chase & Co., commended the nation for making tough decisions that will eventually stimulate growth. He acknowledged the difficulties of these choices but remained optimistic about the country’s potential, particularly in its Fintech sector, which has seen significant growth. Dimon cautioned that inconsistent economic strategies and excessive Regulation might discourage foreign investors, referencing his firm’s previous decision to refrain from expanding into the region due to adverse circumstances. Dimon highlighted the importance of a sound financial framework for domestic and international economic stability.
He called for establishing a reliable legal and regulatory setting to enhance foreign investment. Acknowledging the role of advanced technologies such as artificial intelligence (AI), he affirmed that a strong financial system is essential for the prosperity of any thriving economy. Vice President Kashim Shettima, represented by Senator Abubakar Bagudu, Minister of Budget and Economic Planning, closed the summit by assuring participants that the federal government would prioritise implementing the Green Book recommendations from the event. Shettima emphasised that the government remains committed to ongoing reforms that aim to stimulate economic growth.
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Bagudu emphasised the notable advancements in the country’s economic indicators during his address, noting an increase in the Gross Domestic Product (GDP) and a small drop in inflation between July and August 2024. He credited these positive changes to President Bola Tinubu’s reform initiatives, asserting they have reversed the nation’s economic downturn. Bagudu encouraged the citizens to stay hopeful as the government pursued its extensive economic recovery plan. The summit also saw insights from Indermit Gill, Chief Economist at the World Bank, who stressed that the region’s economic reforms must succeed for the sake of the wider region. Gill noted that the world’s largest black nation is at a crucial turning point and that the success of its reforms would set a positive precedent for other sub-Saharan African countries.