In a move towards stabilizing Nigeria’s economy, the Senate Committee on Banking, Insurance & other Financial Institutions has issued a stern call to action directed at the Central Bank of Nigeria (CBN).
During a retreat held in Lagos with the Nigeria Deposit Insurance Corporation (NDIC), the committee chairman underscored the urgency of curbing inflation as a top priority.
“If you follow what has been happening, particularly from the end of the CBN, you have seen a draft of circulars,” stated the chairman, addressing the recent measures taken by the central bank. “My sense of that is they should give them a bit of time. Most of the policy decisions that we are beginning to see, we believe hopefully, will help us moderate the depreciating value of the currency.”
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The chairman emphasized the pivotal role of inflation control, asserting, “Once you moderate inflation, I’m sure the other price indices, i.e. interest rate or exchange rate, will moderate along with what you do to inflation. So, we must focus our attention on the inflation index in the country.”
Amid discussions about the forthcoming Monetary Policy Committee meeting, slated for February 26, the committee expressed confidence in the timely constitution of its members. “Well, to the extent that we know that it will be held on February 26, clearly the members will emerge before the day,” affirmed the chairman.
Simultaneously, the NDIC disclosed its collaborative efforts with the CBN to bolster bank supervision, particularly amidst economic vulnerabilities. “There are lots of measures that are being put in place to ensure that we heighten our surveillance during this period,” remarked the Managing Director of NDIC, Bello Hassan.
Hassan highlighted the importance of maintaining robust bank asset quality and averting a deterioration in the banking system. “Various measures are being put in place to heighten supervision so that we don’t run into a situation whereby the quality of assets would deteriorate in the banking system,” Hassan emphasized.
With the NDIC playing a pivotal role in safeguarding depositors and promoting sound risk management, the collaborative efforts between regulatory bodies signal a proactive stance towards ensuring financial stability in Nigeria.