Tony Elumelu, the Chairman of United Bank for Africa (UBA), has praised the recent measures taken by the Central Bank of Nigeria (CBN) during its Monetary Policy Committee (MPC) meeting on February 27, asserting that Nigeria is heading in the right direction economically.
During the MPC gathering, the CBN implemented a 400 basis points hike in the Monetary Policy Rate (MPR), raising it to 22.75 percent from 18.75 percent, as part of its strategy to tighten monetary policy.
In an interview held on Thursday, Elumelu expressed a sense of cautious optimism regarding Nigeria’s economic trajectory, emphasizing the necessity for patience and consistency in policy implementation to yield anticipated results in the medium to long term.
Elumelu remarked, “Of all the decisions the Central Bank took at the last MPC, if I were there, those are the exact decisions I would have taken in the circumstance. Hopefully, let us continue and not relent. It’s still early days. This is just the starting, but it seems one can be fairly and cautiously optimistic that we’re getting there. We are on the right track.”
Additionally, he voiced confidence in the potential substantial appreciation of the naira against the dollar, underscoring the importance of maintaining focus, consistency, sincerity, and commitment to the transformation journey despite initial hurdles.
Elumelu noted, “What I see is fixing the issues, making sure that the interest rate is not negative to the investor, ensuring that it’s an inflationary situation and that we’re contracting as much as possible, so that we have fewer Naira chasing dollars, giving confidence to the market.”
