The Central Bank of Nigeria (CBN) has said that its recent monetary policy adjustments are contributing to lower lending rates at a time when inflation continues to moderate.
Emem Usoro, CBN’s deputy governor in charge of Corporate Services, made the remark on Thursday in Lagos at the ongoing seminar for Finance Correspondents Association of Nigeria (FICAN) members and business editors, themed ‘Aligning Monetary and Fiscal Policies Towards Achieving a Robust Financial System’.
Usoro described the theme as timely, saying it provides an avenue for open discussions and practical recommendations that can deepen understanding of ongoing government reforms and the level of coordination required to ensure meaningful outcomes for Nigerians. She was represented by Hakama Sidi Ali, acting director of the Corporate Communications Department of the CBN.
She recalled that when Olayemi Cardoso, governor of the CBN and his management team assumed office two years ago, the macroeconomic environment was extremely challenging. Inflation was elevated, the naira was unstable because of foreign exchange scarcity, external reserves and oil receipts were low, and the financial system was weighed down by significant FX backlogs and heavy dependence on Ways and Means financing.
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According to her, these factors exerted enormous pressure on the financial system and highlighted the urgency of reforms driven by strong, transparent leadership.
Usoro explained that the Bank responded with well-sequenced, compliance-driven measures, including targeted policy actions, strengthened corporate governance frameworks and the ongoing bank recapitalisation programme. She emphasised that these interventions were aligned with the Federal Government’s broader reform agenda and have helped restore stability and improve key macroeconomic indicators. She noted that inflation has eased to 16.05 percent, the exchange rate has stabilised below N1,500 to the dollar with minimal volatility, and external reserves have risen to more than $46 billion, providing over 10 months of import cover. These developments, she said, reflect the commitment of the CBN under Cardoso’s leadership.
She underscored the crucial role of the media in communicating the progress and benefits of the reforms, saying effective communication enhances public understanding and strengthens support for policy outcomes. While she acknowledged that progress has been recorded, she also stressed that more work must be done to reinforce macroeconomic fundamentals and improve living standards. This, she noted, makes consistent collaboration between policy regulators and the media even more important.
Usoro said aligning fiscal and monetary policies is essential for building a more resilient financial system, improving regulation and enhancing stability at a time when technological innovation and digital finance are expanding rapidly. Coordinated policies, she added, promote transparency, accountability, discipline and credibility, ultimately supporting stronger macroeconomic outcomes. She reiterated that the media has a responsibility to present policies clearly and accurately to citizens so they can understand the purpose and impact of government actions.
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She thanked the organisers of the seminar, particularly the director and staff of the CBN’s Corporate Communications Department, for their efforts in ensuring the success of the programme. She also appreciated the participants and members of the press for their consistent support over the years. Usoro expressed confidence that by the end of the seminar, participants would have identified practical insights to strengthen coordination between fiscal and monetary authorities, enhance policy alignment, and improve economic outcomes for Nigerians. She assured them that the Bank would carefully analyse the recommendations emerging from the discussions and work toward their implementation. She concluded by expressing hope that participants would leave with a deeper appreciation of the Bank’s efforts to ensure the public remains well informed about its policies and programmes.
Earlier, in his welcome address, Diabo Sunday Amorighoye, Branch Controller of the CBN’s Lagos office, said the current economic environment demands strong policy coherence. He explained that monetary policy, with its focus on price stability and liquidity, and fiscal policy, which drives public investment and social equity, must work together. According to him, misalignment between the two can result in inefficiencies, inflationary pressures and weakened investor confidence. However, when properly harmonised, these policies can restore investor confidence, deepen financial markets, support inclusive growth, strengthen the naira and help build external reserves.