Joint Senate Committee engages Cardoso, Ministers, EMT on state of economy, Forex, others  

*Olayemi Cardoso, Governor of the Central Bank of Nigeria, explains to the Joint Senate Committee on Finance, Banking, Insurance and Financial institutions how the CBN is working hard to restore credibility to Bank, address the inflationary trend and Foreign Exchange issues in the economy

Alexander Davis | ConsumerConnect

In a move to address pressing concerns in the country’s economy, members of the Joint Senate Committee On Finance, Banking, Insurance and Financial institutions, in the National Assembly (NASS), Abuja, FCT, have commenced an interactive session with the Economic Management Team, including officials of the Central Bank of Nigeria (CBN) led the Governor, Dr. Olayemi Cardoso.

ConsumerConnect reports the Joint Senate Committee’s latest invitation to the top officials comes amid pressing concerns about the state of the Nigerian economy and the attendant sharp decline of the Naira in the Foreign Exchange (Forex) market in recent times.

It is recalled that the Upper Legislative Chamber January 31, 2024, had invited Cardoso and others to appear before it for insights into the recent developments in Nigeria.

The Senators also have asked the CBN to give explanations on the myriad of economic challenges the country is currently facing.

Speaking at the session in NASS,

Senator Adetokunbo Abiru stressed the need for a forensic investigation of past transactions and the issue of compliance of the bank.

In view of the reported increasing poverty level and insecurity at an all time high, owing to the food crisis, the Federal lawmakers believe that the CBN cannot convincingly tell Nigerians that its policies are working.

On use of Dollars in business transactions
Senator Orji Kali while speaking at the session, asserted that the Nigerian Government must go back to abolish the use of Dollars in business transactions as he lamented the dwindling Foreign Direct Investments (FDIs) in the country.

Kalu usually sought to know the CBN’s plans in reconciling with the NLC and TUC to avert the planned strike, a move he says will severely accentuate hunger and hardship.

The lawmakers further expressed fear over the proposed food importation to bridge food shortage and the tendency for it to destroy the country’s food security and discourage farmers from advancing production.

Commenting on the issue,  Senator Adamu Aliero noted there is absolutely no reason to revert to importation.

He said the Federal Government should rather focus on irrigation among others, going back to the interventionist era to improve the impact on agriculture sector.

The CBN Governor, however assured the legislators that Inflation in Nigeria would decline this year, using the inflation targeting framework and moderating to 21.1 percent.

In respect of alleged ineffective policies by the CBN, Cardoso explained the Market is responding to the policies put in place, which he stated are working and yielding fruit.

However, he observed that for the current administration’s policies to be sustainable, Nigeria must moderate its demand for Foreign Exchange.

According to him, the Bankers’ Bank is working hard to restore credibility to CBN, just as he maintained that the genuine issue impacting the exchange rate is Nigerians’ demand for US Dollars for business and personal needs.