The Central Bank of Nigeria (CBN) has announced the postponement of its monetary policy committee meeting for the second time, citing recent developments and engagements within the financial landscape. This decision, confirmed by Dr. Isa Abdulmumin, the CBN’s Director of Corporate Communications, comes amidst growing concerns over Nigeria’s surging inflation rates, reaching a staggering 27.33 per cent in October 2023.
Originally slated for Monday and Tuesday, the meeting’s delay under Governor Olayemi Cardoso’s tenure has left investors and analysts eagerly awaiting insights into strategies aimed at tackling the inflation crisis.
Abdulmumin shed light on the reasons behind the delay, citing the upcoming Chartered Institute of Bankers of Nigeria dinner where the CBN governor is expected to present a comprehensive economic roadmap for the country. He emphasized the significance of this event, stating, “All roads lead to the 2023 CIBN annual dinner slated for Friday, 24th.”
‘The Governors Day’ at the forum is anticipated to provide Governor Cardoso a platform to address stakeholders on economic and financial developments throughout the year, shedding light on the economic prospects for the upcoming year.
Economic experts express concern over the implications of the postponement, highlighting the vital role MPC meetings play in providing insights into the nation’s economic state and guiding public policy. The delay raises concerns about communication gaps and the need for clarity on government policy direction in the face of ongoing market reforms.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, stressed the urgency of reconvening the policy meeting, underlining the importance of transparent communication, especially during a transition in leadership. He emphasized the significance of MPC meetings in offering guidance to investors and the public, urging for their prompt resumption.
Meanwhile, Cordros Capital, in a recent prediction, suggests a potential 100 basis point hike in the Monetary Policy Rate, currently set at 18.75 per cent. This projection comes in light of the rapid shifts within Nigeria’s monetary policy landscape and the CBN’s concerted efforts to address the escalating inflation, with expectations indicating a potential peak of 28.02 per cent year-on-year by December.
As stakeholders and the financial markets await further developments, the delay in the MPC meeting adds to the anticipation surrounding Governor Cardoso’s strategies in addressing the nation’s economic challenges amid the prevailing inflationary pressures.
