Several experts have urged Olayemi Cardoso, the acting governor of the Central Bank of Nigeria, and his team to shift their focus towards the agricultural sector and increasing exports.
This shift is seen as a strategy to combat both inflation and the declining value of the naira.
This call comes in the wake of Cardoso taking office on Friday, pending approval from the National Assembly.
The Center for the Promotion of Private Enterprise (CPPE) has outlined a ten-point agenda for the new CBN governor.
Dr. Muda Yusuf, the Director/Chief Executive Officer of CPPE, emphasized the importance of restoring confidence in the forex market.
The current economic challenges include a depreciating exchange rate, rising energy costs, inflationary pressures, a backlog of foreign exchange obligations, and debt service obligations.
Yusuf also highlighted the need for the CBN to strengthen the financial system, improve its efficiency, and review the Capital Requirements for Banks.
He stressed the importance of keeping the CBN’s finances within statutory limits to prevent adverse effects on the macroeconomic environment.
The policy regarding the redesign of the naira should be indefinitely suspended, according to Yusuf.
Additionally, he recommended a closer look at the tenure and cost of funds in the banking system and suggested steps to reduce concentration risks in the banking system to mitigate systemic threats.
Yusuf urged the new governor to prioritize stakeholder engagement and corporate governance.
Financial analyst Brian Essien of McBrain & Company noted that the acting CBN governor’s primary task is to strengthen the naira.
He acknowledged that Cardoso’s background leans more towards administration than economics but emphasized the need for stability amid challenging economic conditions, including a high Debt Service to Revenue Ratio and excessive borrowing.
