The Governor of the Central Bank of Nigeria, Dr. Olayemi Cardoso, said the previous administration of the central bank had implemented quasi-fiscal policies that injected N10 trillion into the economy through various intervention programmes.
Mr. Cardoso made this revelation at the annual Bankers Dinner of the Chartered Bankers Association of Nigeria held in Lagos on Friday.
Mr. Cardoso, in his keynote address, said the apex bank with the CBN was deviating from its core mission with quasi-fiscal programs.
He said: “We are aware that the events of the past few years have also cast a negative light on the CBN. This can be attributed to a variety of factors, including a deviation from the core mission of , the unconventional use of financial instruments, an inefficient and opaque foreign exchange market that hindered economic growth, clear access, and development financial activities. Among other challenges, the relationship between fiscal and monetary policy was unclear.
“Up until now, the CBN has deviated from its core mission and engaged in quasi-financial activities that pumped over N10 trillion into the economy through largely disparate initiatives spanning agriculture, aviation, power, youth, and many other sectors. clearly diverted attention from achieving the Bank’s objectives and thrust the Bank into an area in which it clearly had limited expertise.
But the bank’s chief promised that issues affecting the bank would be addressed under his administration.
He said: “Under my leadership, the Central Bank of Nigeria will vigorously address these issues. We will address systemic deficiencies, restore corporate governance, strengthen regulation and implement smart policies. We will assure investors and the business community that by recalibrating our policy toolkit and implementing a wide range of measures, the economy will experience significant stability in the short to medium term. .”
Mr. Cardoso reiterated the mission of the CBN, stating that the CBN’s main mission is to issue legal tender, protect external reserves, promote a sound financial system, and provide economic and financial advice, among other purposes. The aim is to ensure price stability. government.
“In line with its strategy to refocus on its core mandate, the CBN will discontinue direct quasi-fiscal intervention activities and instead utilize orthodox monetary policy instruments to implement monetary policy. As part of this focus, the CBN has just approved the adoption of an explicit inflation targeting framework to enhance the effectiveness of monetary policy. The details and requirements of this framework are currently being finalized in collaboration with fiscal authorities. In addition, the CBN will provide future guidance, increase transparency, and maintain effective communication with the public to solidify expectations and build trust among stakeholders,” Cardoso said. concluded.
