As the Federal Government continues its policy reforms to further boost the nation’s economic performance and by so doing improve investor confidence in the country, the Deputy Governor of the Central Bank of Nigeria (CBN) Corporate Services, Ms Emem Usoro, on Thursday canvassed the need for alignment of the fiscal and monetary policies in order to strengthen the financial system.
The banker, who made this remark in her Keynote Address delivered at the Seminar for Finance Correspondents and Business Editors with the theme “Aligning Monetary and Fiscal Policies Towards Achieving a Robust Financial System” and held in Lagos, described the theme as an opportunity for open discussions and recommendations that will enhance understanding of current government reforms and the collaboration needed to ensure positive outcomes for Nigerians.
The Deputy Governor, who was represented at the event by the Acting Director, Corporate Communications Department of the apex bank, Mrs. Hakama Sidi Ali, recalled that when Olayemi Cardoso management team assumed office two years ago, the macroeconomic environment was challenging.
Specifically, she pointed out that inflation was high, the naira was unstable due to forex scarcity, external reserves and oil receipts were low, and the economy faced significant FX backlogs and dependence on ways and means financing, adding that these conditions stressed the financial system and highlighted the urgent need for reforms.
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According to her, in order to reverse the ugly micro and macroeconomic indices, the CBN, guided by strong and transparent leadership, the Bank implemented well-sequenced and compliance-driven measures, including orthodox monetary policies, strengthened corporate governance, and the ongoing bank recapitalisation programme, which aligned with the Federal Government’s reform agenda, have helped restore stability and improve key macroeconomic indicators.
The Deputy Governor noted that based on the policy measures, the nation’s Inflation had declined to 16.05%, the exchange rate has stabilised below ₦1,500/$ with minimal volatility, and external reserves now exceed $46 billion, providing over 10 months of import cover as the monetary policy adjustments are supporting lower lending rates as inflation continues to ease.
She maintained that these achievements reflected the commitment of the Cardoso-led management team to the naation’s financial system stability and underscored the importance of the media in communicating the benefits and progress of reforms to the public as effective communication usually strengthens public understanding and supports successful policy outcomes.
Usoro stressed that while progress had been made, more work is required to improve macroeconomic fundamentals and the standard of living for Nigerians hence the need for collaboration among policymakers, regulators, and the media even more important.
She canvassed: “Aligning fiscal and monetary policies is essential to strengthening the financial system, enhancing regulation, and ensuring resilience, especially as technological innovation and digital finance continue to expand.
“Better coordination promotes transparency, accountability, policy discipline and credibility, leading to improved economic outcomes. The media also has an important role in explaining policies clearly and accurately to citizens”, the banker added.
She commended the organisers of the seminar, particularly the Director and staff of the Corporate Communications Department and the journalists for their efforts in ensuring that this year’s seminar is held as scheduled.
The Deputy Governor expressed optimism that by the end of the seminar, the participants would have identified key actionable takeaways that will help improve interactions between our fiscal and monetary authorities, thereby better aligning our policies, enhancing policy outcomes, and ultimately improving the overall well-being of Nigeria.
She assured the journalists that the recommendations from the two-day event would be critically analyzed by the CBN management and aspire to implement them.
