Bangkok:The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has reaffirmed the bank’s commitment to fostering a credible, independent, and transparent Monetary Policy Committee (MPC).
According to News Agency of Nigeria, Cardoso made these remarks during the IMF/World Bank Group Annual Meetings in Bangkok, Thailand. He emphasized that the committee’s decisions are derived from rigorous debates, diverse perspectives, and integrity.
Cardoso highlighted the importance of maintaining the independence of external members and promoting open discussions among committee members to bolster public and investor confidence in the bank’s monetary policies. He noted that appointing recognized, independent-minded external members to the MPC was a strategic move to reduce groupthink and enhance the quality of policy deliberations.
He also stressed that external members bring unique perspectives, differing from those of internal members who are more involved in the bank’s daily operations. This diversity encourages questioning of existing assumptions and fosters independent assessments before reaching decisions.
Addressing his influence as CBN governor on internal committee members, Cardoso clarified that he does not conduct separate meetings with them prior to formal MPC meetings. Instead, all data is shared with members in advance to enable thorough examination and analysis.
Furthermore, Cardoso assured that external members have access to resources comparable to those available to internal members, including the ability to consult outside specialists when necessary. The CBN also organizes retreats and other engagements to enhance members’ understanding of monetary policy challenges.
Cardoso underscored the importance of transparency in rebuilding the credibility of both the MPC and the CBN, noting that external members sometimes question why certain information is not available to the public.
He also mentioned that Nigeria’s improved external reserves, reaching their highest level in 18 years, alongside a sustained decline in inflation and continued economic growth, have supported the effectiveness of monetary policy. Cardoso concluded that the ultimate goal is to establish a monetary policy committee whose decisions are trusted for being based on independent judgment, transparency, and robust deliberation.