Follow Us on Google
By Merit Ibe
The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to adopt the right policy mix to control high inflation and ensure stability of the exchange rates.
The organisation, which gave the charge following the recapitalisation move of banks by the governor of the CBN, Olayemi Cardoso, noted that given the sensitivity of monetary policy and price stability, the CBN should ensure transparency and synergy between monetary and fiscal authorities and effectively communicate significant changes in policy direction.
It commended the plan of the CBN to review the minimum capital base of banks due to consistent devaluation of the naira and cautioned the apex bank to strengthen its banking supervision to avoid “Too big to fail” banks.
Applauding the CBN governor on his successful outing at the CIBN’s 58th Annual Bankers Dinner and the grand finale of the Institute’s 60th anniversary, the Director General of the chamber, Chinyere Almona, said that the LCCI is concerned about the state of the economy, particularly the volatile foreign exchange situation, high inflation and general uncertainty. She stressed the need for CBN to be committed to promoting integrity, good corporate governance and the highest ethical standards.
She said: “Over the year, the Chamber has consistently expressed concerns about the implications of high inflation, high interest rate and unstable exchange rates on businesses and households.
“The Chamber is aware of the enormous challenges and the uphill task before the CBN in ensuring macroeconomic stability and restoring investors’ confidence. However, we note the inconsistencies between the Federal Government’s vision of achieving a $ 1 trillion economy in the next six years and the medium-term expenditure framework (MTEF).
“Meanwhile, macroeconomic projections in the MTEF state that the economy will grow by 3.76 per cent, 4.22 per cent and 4.78 per cent in 2024, 2025 and 2026, respectively. We note that the projected growths are sub-optimal to achieve a $1 trillion GDP by 2029, which implies an average growth of 21 per cent over the next six years.”
Almona appreciated the intellectual humility of the governor in admitting the errors or mistakes of the past, particularly in the areas of corporate governance failures, diminished institutional autonomy of the CBN, deviation from the core mandate of the bank and unorthodox use of monetary tools and foray into fiscal activities under the cover of development finance activities, challenging the current CBN team to ensure professionalism and integrity and rebuild the trust of the general public.
