From Moshood Karim
In its first meeting of the year, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has decided to keep the nation’s key interest rates unchanged, with the Monetary Policy Rate (MPR) remaining stable. The decision, made during the 299th MPC meeting, reflects a commitment to maintaining the stability of the financial system as Nigeria navigates its economic recovery.
CBN Governor Olayemi Cardoso, in his address following the meeting, emphasised the importance of consolidating recent market gains and ensuring a sustained recovery. “Now more than ever, consolidating market gains and ensuring sustained improvement is crucial. We will increase our collaboration with the fiscal sector, focusing on deepening and regularising interactions to drive economic growth,” Cardoso said.
A key announcement in the Governor’s speech was regarding the new ATM withdrawal charges, which are set to take effect soon. The CBN stressed that the policy would not limit access to cash but would curb exploitative cash-handling fees, ensuring a smoother banking experience for customers.
The CBN also highlighted positive trends in the foreign exchange (FX) market, with stabilising exchange rates and strengthened price controls. These developments, coupled with growing investor confidence, have provided a much-needed boost to Nigeria’s economy. Cardoso reassured that the Bank’s commitment to liquidity enhancement and transparency in FX operations would continue.
“We remain focused on achieving stability in the foreign exchange and financial markets. We will stay the course, embracing orthodox policies, and remain vigilant. Inflation has been too high for too long, and our goal is to reduce it from double digits to single digits over the medium to long term,” the Governor added.
The Bank also called for ongoing monitoring of the banking sector’s recapitalisation efforts, stressing the importance of injecting quality capital into the system. This is seen as a crucial step in maintaining the integrity and stability of Nigeria’s banking landscape.
As part of Nigeria’s recovery, the Naira has gained in competitiveness, attracting more interest from international investors looking to capitalise on the nation’s future prospects. With stabilising economic fundamentals, the outlook for Nigeria’s financial markets appears promising as the country continues its journey toward sustained growth.
Get a premium automobile insurance coverage for your vehicle for as low as #15000 only and claim up to #3,000,000 in damages @Zenith Insurance To signup: WhatsApp/Call: +2349028313757
