Economic Analyst Tasks New CBN Governor on Price Stability, Inflation

By Bliss Okperan

A Professor of Financial Economics and Director of the Centre for Economic Policy Analysis and Research of the University of Lagos (UNILAG), Mr Ndubisi Nwokoma, has urged the newly nominated Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Michael Cardoso, to work toward price stability and tame the wild inflation.

In an interview on Arise TV’s breakfast programme, The Morning Show, on September 18, 2023, Mr Nwokoma highlighted some issues the incoming apex bank chief must address to be successful.

The professor charged Mr Cardoso to painstakingly tackle inflation, manage the level of money supply, and keep the banking sound to improve confidence.

“To maintain monetary and price stability is the function of the CBN. You also need to have a sound banking system; people are able to transact, and there’s no failure or error in banks,” the university lecturer said on the show monitored by Business Post.

“Under (Godwin) Emefiele, we had issues of inflation. What the CBN has been doing is to always jack up the monthly policy rate because they want to tighten credit to arrest inflation, and that has been a challenge,” he said.

“People go to the market, and prices are always changing. There are many factors like exchange rate and production.

“That is part of things the CBN Governor needs to look at and maintain monetary and price stability,” he submitted.

Mr Nwokoma also advised the CBN chief, who is yet to be confirmed by the Senate, to work closely with the fiscal authorities led by the Minister of Finance and the Coordinating Minister of the Economy, Mr Wale Edun, to keep the economy growing.

He expressed optimism that this would be achieved as both Mr Cardoso and Mr Edun belong to the same political family as President Bola Tinubu.

“Monetary policy is the core function of the central bank, while fiscal policy is the core function of the Minister of Finance, and they will need to work together. Good enough, they are of the same political family, but there is the need for them to harmonise [to achieve a common goal],” he said.