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By Godfrey Bivere, Rosemary Iwunze & Elizabeth Adegbesan
The Central Bank of Nigeria, CBN, has stated that it is on top of the issues around inflationary pressures in the economy.
Speaking at the 2023 Vanguard National Economic Discourse held in Lagos yesterday, CBN Governor, Mr Godwin Emefiele, acknowledged the concerns raised by participants at the event over the effects of the monetary policy stance of the apex bank’s inflation-targeting policy on the economy.
Represented by Mr Bariboloka Koyor, Lagos Branch Controller of CBN, Emefiele stated: “We are keeping our eyes on the indices as they are going and it is our responsibility to bring in the necessary controls and the regulations that we believe will be able to address all the issues.
“Inflation like we know at the moment is a little bit on the high side but we have taken policies and stance to moderate it.
“So as regards the election, we are already taking actions that will help with the money supply and we believe that with the cooperation of Nigerians, we will be able to regulate the money supply.
“We know that inflation depends on the quantum of money pursuing the goods and services and the dollars and the rest of it all.
“So we have noted that there are a lot of funds that are outside the banking system which if it is made available will give banks the ability to be able to lend to the needy sector so that we will have a balance in the circulation and the distribution of the currency. That is the essence of redesigning the currency to be able to address some of the issues.
“So people will continue to spend money be it for election, census or other activities that the government will have but that is why we are there from the Central Bank side to look at the money supply, the money distribution and we are also looking at the indices, the data as it affects other business activities and the inflation eventually.
“So I assure you that all Nigerians should have rest of minds. We are doing our best to regulate and make sure that the inflation is tamed to the best of our ability.”
On the role of the various authorities and segments in the macroeconomic challenges, he stated: “We believe that the economy of Nigeria is in our hands and so all of us will have to work together. Both the monetary authorities as well as the fiscal authorities, of us are Nigerians. Until we begin to take steps ourselves, having faith in our own country and in our own economy, we won’t be able to go too far.
“All the economic policies you are reading in the books may not work in Nigeria. We are unique people. I am saying this because you are my witnesses and you can see the efforts that the CBN is making”.
CBN’s interventions
Mr. Koyor also said the CBN was doing more than just the monetary policies in addressing the macroeconomic challenges.
In this regard, he stated: “Apart from the monetary policy which is the traditional role of the CBN, the CBN has done far more than that and you will agree with me that in the recent past, the CBN has intervened much more in the economy.
“The National Theatre has been there for a very long time and not much attention was given to it but through the intervention of the CBN we brought back the glory of the National Theatre and so the road is open to those who are in that sector, you can go and make use of that facility and develop your talent.
“We have come up with about N500 billion projects. We are looking at the technology village and we are trying to get a space for 40 hectares of land. We can have it around Lagos where we can have a technology village and so we will be able to get the people that are into technology because we know that most of these things are to be driven by technology. Technology is a major source of income in most of the advanced countries of the world.
“The RT200 is another initiative to address the issue of forex for those who are in Nigeria and can export and earn foreign exchange. We are done with the first and second summits on RT200 as such they can repatriate their forex and so get a certain percentage and plough it back.
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