Nigeria: United Capital Endorses CBN’s Collaborative Approach with Stakeholders

CBN Restricts Banks as Naira Slips Amidst Fresh Forex Concerns
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United Capital Group, an asset management firm, has voiced its support for the Central Bank of Nigeria’s decision to engage stakeholders in future intervention programs, emphasizing the importance of collaboration for effective economic policies.

The firm articulated its endorsement in a flash note issued following an interview with CBN Governor, Dr. Olayemi Cardoso, on Arise TV. Dr. Cardoso highlighted the apex bank’s commitment to involving stakeholders and experienced players in forthcoming interventions.

United Capital commended this approach as prudent and forward-thinking, noting that collaboration fosters inclusivity within the market and enhances confidence in the economy. By soliciting insights from stakeholders, decision-makers gain diverse perspectives that contribute to well-informed decisions.

Additionally, United Capital anticipates a modest improvement in the valuation of the naira as a result of the CBN’s reforms. However, it acknowledges that investor confidence remains low and suggests addressing this issue to further strengthen the naira. Enhancing crude oil production and revitalizing the non-oil sector are seen as critical steps to diversify revenue sources.

The firm also lauded the CBN’s new communication strategy, highlighting its potential to educate the public on the rationale behind the apex bank’s decisions. Effective communication of the Monetary Policy Committee’s decisions is expected to clarify the need to address inflationary pressures in the country.

Dr. Cardoso underscored the necessity of interventions in Nigeria, given its vast landmass and population. However, he emphasized the importance of ensuring that intervention programs are successful and reach their intended beneficiaries. He stressed the need for collaboration with stakeholders to design effective interventions that address the needs of farmers, SMEs, and other sectors of the economy.

Moving forward, the CBN aims to work closely with stakeholders to design impactful intervention programs, drawing on both local and international expertise. Dr. Cardoso emphasized the imperative of avoiding failed interventions and ensuring that relief reaches those at the bottom of the socioeconomic pyramid.

As of October 2022, approximately N9 trillion had been disbursed as intervention funds by the apex bank, reflecting the scale of past interventions and the importance of ensuring their efficacy in the future

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