The Central Bank of Nigeria (CBN) has articulated its rationale for maintaining elevated interest rates, emphasizing that the current monetary policy stance is not solely focused on combating inflation but also on restoring credibility, bolstering investor confidence, and safeguarding the value of the naira. CBN Governor, Olayemi Cardoso, conveyed this message at the Nigeria Domestic Investment Summit in Abuja, acknowledging the adverse impact of high interest rates on businesses and the real sector, while simultaneously asserting their necessity for stabilizing the macroeconomic landscape. He stressed that the prevailing interest rates serve as a clear signal of Nigeria’s commitment to defending its currency, achieving macroeconomic equilibrium, and regaining the trust of investors.
Cardoso outlined the challenging economic context inherited by the current administration, characterized by policy distortions, an opaque foreign exchange market, and dwindling investor confidence. He highlighted the CBN’s immediate priorities as arresting the economic decline and reinstating discipline through bold reforms, including exchange rate unification, phasing out unsustainable interventions, and reverting to a transparent market framework. These measures, while potentially painful in the short term, are deemed essential for laying the foundation for sustainable economic recovery and growth.
The CBN Governor further emphasized the bank’s commitment to fostering inclusivity alongside stability. Initiatives such as improving access to finance, modernizing payment infrastructure, streamlining regulations, and empowering banks to effectively support businesses are central to this strategy. He underscored the bank’s ongoing recapitalization program as a key component of this effort. Cardoso also commended domestic investors for their resilience in the face of volatility, policy uncertainty, and inflationary pressures, urging them to actively participate in shaping a financial system that serves their needs.
In a significant shift in approach, the Federal Inland Revenue Service (FIRS) is repositioning itself as a facilitator of growth rather than a mere enforcer of tax regulations. Executive Chairman Zacch Adedeji articulated this new perspective, emphasizing the agency’s commitment to serving businesses and simplifying tax processes. He highlighted the recent consolidation of over 60 disparate taxes into a single-window framework, designed to ease compliance and foster business growth. This move underscores the government’s recognition of the vital role of businesses in driving economic prosperity.
The importance of domestic investment took center stage at the summit, with NACCIMA President Jani Ibrahim highlighting the crucial role of local investors, MSMEs, and industrialists in Nigeria’s economic journey. While acknowledging the importance of foreign investment, Ibrahim stressed the often-unsung contributions of domestic investors, emphasizing their resilience and ingenuity. He posited that domestic investment must be the cornerstone of Nigeria’s strategy to achieve its ambitious $1 trillion economy target by 2030, expressing confidence in surpassing this goal. NACCIMA’s upcoming Made-in-Nigeria exhibition further underscores the focus on showcasing local capacity and attracting investment opportunities.
The summit, directed by President Tinubu and organized by Trade Minister Jumoke Oduwole, provided a platform for co-creating strategies, policies, and reforms aimed at actualizing the eight-point Renewed Hope Agenda and the Nigeria First Policy. Permanent Secretary of the Ministry of Industry, Trade and Investment, Abba Rimi, recognized domestic investors not just as capital providers, but as community builders, job creators, and drivers of local value chains. He pledged government support for local businesses and emphasized the importance of policy co-creation as a core strategy moving forward. The summit served as a forum for showcasing investment-ready opportunities, addressing challenges, and developing solutions that reflect the realities of Nigerian entrepreneurs, demonstrating the government’s commitment to listening, learning, and taking action to support economic growth.
