In an encouraging development, United Capital Group has voiced its endorsement for the Central Bank of Nigeria’s (CBN) proposed strategy to engage with stakeholders in its future intervention programs. This affirmation came in a flash note following an interview with Dr. Olayemi Cardoso, the CBN Governor, on Arise TV.

Collaborative Approach for Future Interventions

Under the new strategy, the CBN plans to involve stakeholders and practitioners with demonstrated experience in the implementation of its future interventions. United Capital lauded this move, characterizing it as a judicious and progressive approach that would foster inclusivity within the market, thereby strengthening the economy’s resilience.

Expectations for Naira and the Economy

United Capital anticipates a modest uplift in the valuation of the naira due to the effective implementation of the CBN’s reforms. However, it recognizes that investor confidence is currently at a low ebb. To ensure a robust currency, the firm suggests enhancing crude oil production and revitalizing non-oil sectors to diversify revenue streams.

Communication Strategy and Education

The CBN’s communication strategy has been identified as a critical factor in educating the public about its decisions, particularly those made by the Monetary Policy Committee concerning inflationary pressures. Dr. Cardoso underscored the necessity for interventions given Nigeria’s expansive landmass and population. He also acknowledged that the country can no longer afford to have failed intervention programs.

He emphasized the need for a robust framework to ensure that intervention funds reach their intended recipients effectively. This comment was made in context of the release of approximately N9 trillion as intervention funds by the apex bank in the past. Through such strategic reforms and collaborations, the CBN intends to address liquidity shortages in the Foreign Exchange market and promote market liberalization to attract more investments and boost the naira’s recovery.