Aligning fiscal, monetary policies have stabilise Nigeria’s financial system – CBN
Omeiza Bilal
The Central Bank of Nigeria has reiterated that aligning fiscal and monetary policies will ensure a strong and stable financial system.
In a keynote address at the Seminar for Finance Correspondents and Business Editors, Thursday in Lagos, Deputy Governor, Corporate Services of the CBN, Ms Emem Usoro, who was represented by CBN’s Ag. Director, Corporate Communications Department, Hakama Sidi Ali (Mrs), explained that the handshake between both marriage institutions has produced positive outcomes for the economy.
“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,” the Deputy Governor said.
Speaking on the theme, “Aligning Monetary and Fiscal Policies Towards Achieving a Robust Financial System,” Usoro explained that “When the Governor, Olayemi Cardoso management team assumed office two years ago, the macroeconomic environment was challenging. 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 of financing. These conditions stressed the financial system and highlighted the urgent need for reforms.
“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. These actions, aligned with the Federal Government’s reform agenda, have helped restore stability and improve key macroeconomic indicators.
“Inflation has 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. Monetary policy adjustments are supporting lower lending rates as inflation continues to ease.”
The CBN Deputy Governor further said that the result from the various reforms initiated by the Governor, underscores the importance of the media in communicating the benefits and progress of reforms to the public.
“Effective communication strengthens public understanding and supports successful policy outcomes.
“While progress has been made, more work is required to improve macroeconomic fundamentals and the standard of living for Nigerians. This makes partnerships among policymakers, regulators, and the media even more important.
“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,” she said.
