CBN Reveals Action Plan to Revive Economy

The governor of Central Bank Nigeria (CBN), Olayemi Cardoso, has highlighted some action plans the apex bank wants to embark on in order to help boost the economy.

Cardoso highlighted some of the plans in his interview with Arise TV today (Monday)

According to Cardoso, the eventual stability of the naira will be driven by its ability to address the fundamental issues affecting the economy, bring inflation under control, and promote the growth of Nigerian businesses so that exportation will be greater than consumption.

Cardoso revealed that the CBN is currently planning strategies to revamp the Bureau de Change segment. He said this is imperative for enhanced efficiency and aims to streamline their numbers for better management as well as supervision.

He said that in the short term, significant work have been put in place and they are already witnessing results in improving the market structures and removing all the obstacles stifling the supply of foreign exchange into the country.

On the issue of remittance flow, Cardoso pointed out that the challenges have been addressed, which has reduced the ability of banks to hold on to positions.

He said they now have the export proceeds from the national energy sector flowing back through the Central Bank and they have also initiated a number of short-term measures to make naira assets attractive to foreign investors

He revealed that recently, the CBN removed the exchange rate cap to enable international Money Transfer Operators (IMTOs) to disburse remittances at market-determined rates without restrictions, following a willing seller and willing buyer approach.

In addition, he stated that the transfer of the NNPC account to the CBN, as directed by President Bola Ahmed Tinubu, aims to increase liquidity in the market.

These measures address the foreign exchange market’s liquidity challenges, streamline capital flows and mitigate currency risks.