Nigeria’s inflation rate rose for the tenth month in October to 27.33%, the highest in 18 years. Prior to that, the country had also seen a rise in inflation in previous months. While several Nigerian businesses continue to deal with economic difficulty, the entire economy will also have to deal with silence from the CBN.
The perceived lack of action surrounding the new central bank team led by Dr. Yemi Cardoso has left investors and businesses feeling unsettled. The Monetary Policy Committee of the Nigerian central bank’s decision to postpone its meeting last week has increased doubt on the new governor’s strategy for resolving the country’s currency problem, which is Africa’s largest economy.
This was the second time since Yemi Cardoso assumed office in September that the meeting had been called off. It also takes place against the backdrop of ongoing dollar shortages, which have driven up inflation and depreciated the value of the naira.
While Cardoso addressed bankers in Lagos on Friday on the issue of inflation and also explained why the MPC meeting is yet to be held, the CBN is still yet to explain its strategy to handle the current economic and currency issues.
Tough Decisions for Nigerian Businesses as Inflation, FX, other Market Forces Bite
Prices for everything from food to petrol are rising due to the lack of a clear plan to handle economic woes, giving the impression that the former governor has not been well replaced One reason why efforts to reposition Nigeria as an investor-friendly nation are failing is this lack of focus.
The lack of clarity and certainty is undermining efforts to rebrand Nigeria as an investor-friendly country. The postponement of the monetary policy meeting and the lack of a clearly stated plan to tackle economic problems are causing concern among investors and foreign businesses.
The silence surrounding the new central bank leadership team is not helping to address these concerns and is creating uncertainty about the future direction of the Nigerian economy. When will the CBN give a clear-cut strategy to drive the economy?
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