The Lagos Chamber of Commerce and Industry (LCCI) has urged the CBN to adopt the right policy mix in order to ensure the stability of the exchange rate, control high inflation effectively and as well support growth and job creation.
Speaking on the CBN’s Governor’s address at the just concluded 58th Annual Bankers Dinner, director general of the Lagos Chamber of Commerce & Industry Dr, Chinyere Almona, FCA stressed the importance of the apex Bank’s commitment to promoting integrity, good corporate governance, and the highest ethical standards that will impact on the current state of the economy.
She urged the CBN on the need to focus on issues such as the volatile foreign exchange situation, high inflation, and general economic uncertainty.
“Throughout the year, the LCCI has consistently voiced apprehensions regarding the impact of high inflation, high-interest rates, and unstable exchange rates on both businesses and households. The chamber acknowledges the significant challenges facing the CBN in ensuring macroeconomic stability and restoring investor confidence.”
One key point of contention highlighted by the LCCI is the apparent inconsistency between the federal government’s vision of achieving a $1 trillion economy within the next six years and the medium-term expenditure framework (MTEF). The MTEF projects a sub-optimal growth rate, which falls short of the ambitious target set by the government.
Recognizing the sensitivity of monetary policy and price stability, the LCCI called on the CBN to ensure transparency and synergy between monetary and fiscal authorities emphasizing the need for effective communication regarding significant changes in policy direction.
Addressing the issue of bank recapitalization, she commended the CBN’s plan to review the minimum capital base of banks, citing consistent devaluation of the Naira as a factor eroding the capital base of banks.
“The chamber cautions against the creation of “Too big to fail” banks and urges the CBN to strengthen its banking supervision.
“The LCCI appreciates the CBN Governor’s acknowledgment of past errors, particularly in the areas of corporate governance failures, diminished institutional autonomy of the CBN, and deviations from the bank’s core mandate. As the CBN moves forward, the LCCI challenges the current team to prioritize professionalism, integrity, and the rebuilding of public trust.”
