The Governor of the Central Bank of Nigeria, Dr. Olayemi Cardoso, has revealed that the Monetary Policy Committee meetings of the apex bank have been largely ineffective.
He said this on Friday in his keynote address at the Annual Dinner of the Chartered Institute of Bankers of Nigeria held in Lagos.
Cardoso said that based on constitutional provisions, the MPC was required to meet four times a year and it has already done so this year.
He said, “This is what I, together with my team at the Central Bank have been focused on doing in the past two months. We have critically reviewed the effectiveness of the Central Bank’s monetary policy tools and have spent time fixing the transmission mechanism to ensure the decisions of MPC meetings actually result in desired objectives.
“For quite some time, there has been a dislocation of our monetary transmission mechanisms rendering the MPC meetings largely ineffective.
“For the avoidance of doubt, the Central Bank of Nigeria Act 2007 requires that the meeting of the Monetary Policy Committee of the Bank be held at least four times a year, and the Bank has satisfied this requirement for 2023. Our focus has been on ensuring these meetings are useful and effective.”
