Monetary policy reforms, unification of FX rates yielding results, says Shettima

Vice-President Kashim Shettima says monetary policy reforms and unification of foreign exchange (FX) rates are yielding positive results.

Shettima spoke on Friday at the bankers’ committee retreat in Abuja themed “Contract and Commitment to National Development and Economic Growth”.

Earlier today, the naira appreciated to N1,600/$ in the parallel section of the FX market — the lowest dollar rate recorded since August 13, when the naira traded at N1,595/$.

Represented by Tope Fasua, special adviser on economic affairs, Shettima noted the federal government’s commitment to transformative economic reforms aimed at positioning Nigeria as a leading economy in Africa and beyond.

The vice-president acknowledged the challenges involved in implementing the reforms but said they are already showing positive outcomes.

”That is why some of the painful reforms are taking place at this time. Mr President, being the valiant leader that he is, has pressed on in favour of the long-term perspective, in spite of pushbacks,” Shettima said.

”The key reforms pertain to the unification of the Naira rates in the official market and the closing of the gap with parallel markets, the removal of fuel subsidies.

“There are also the reforms in the monetary policy areas, especially the treatment of ways and means advances, and the tax reforms.

“None of these reforms are easy to implement but we can see that in spite of all, they are beginning to yield results.

“We only ask that our people exercise a little more perseverance while the reforms take root.”

‘BANKS CENTRAL TO NIGERIA’S GROWTH’

Shettima stressed the importance of banks as catalysts for development, stating that their growth should directly contribute to the broader economy.

”Our banks are central to that growth in GDP output that every nation pursues on a minutely basis,” he said.

“This is in facilitating transactions, being receptacles for savings and investments, and in availing credits of all shapes and structures.

“The robust profitability that we have seen in that sector should reflect, at least, marginally in the GDP growth numbers posted by the country at large.

”Indeed, we should be speaking about causality more than correlation. And we know that you are up to the task.”

Also speaking at the event, Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), said the government has taken practical steps to revamp the Nigerian economy over the past one year.

Cardoso said the country is making steady progress in various economic sectors.

He urged both the public and private sectors to synergise and consolidate on the modest achievements.

“As we gather here, we are acutely aware of the challenges that have tested our nation in recent years; poverty, rising inflation, infrastructure deficits, insecurity, and unemployment,” Cardoso said.

“It is not all bleak. In recent times, we have witnessed significant strides made by both government and private partners in leveraging the immense opportunities before us to rewrite our nation’s story.

“However, while progress has been steady, it is evident that the road ahead remains long.

“The work before us requires focus, innovation, and unwavering resolve to reshape our collective future.”

He urged the bankers’ committee to take bold and meaningful steps toward fostering economic growth and development.

“This is why the theme of this retreat has been carefully chosen, to inspire deeper collaboration and renewed commitment as we strive to build a brighter future for ourselves and generations to come,” the governor said.

“Over the next few days, we will engage in meaningful discussions, share insights and experiences, and explore bold solutions to the pressing issues facing our nation.”

Cardoso outlined key areas for consideration, including improving the business environment for corporations and small and medium enterprises (SMEs), leveraging public-private partnerships for infrastructure development, and addressing workforce skill gaps.

He encouraged the committee members to discuss strategies for creating an ecosystem that fosters and supports innovation.

Additionally, Cardoso emphasised the need to strengthen the social contract with Nigerians to promote a more inclusive economy.