United Capital Group, an asset management company, has voiced its approval of the Central Bank of Nigeria’s decision to engage with various stakeholders for future intervention programs.
In response to an interview with the CBN Governor, Dr. Olayemi Cardoso, on Arise TV, United Capital published a flash note expressing its support of the collaborative approach.
The CBN governor emphasized the importance of involving experienced stakeholders in future interventions, a move that United Capital praised as wise and forward-thinking. The group believes that this approach will not only foster inclusivity within the market but also enhance confidence in the economy by incorporating valuable insights from diverse perspectives into decision-making processes.
United Capital also anticipates a potential increase in the valuation of the naira as a result of the CBN’s reformation efforts. However, the group acknowledged the existing low investor confidence in the economy and stressed the need to address this issue to strengthen the naira by diversifying revenue sources and enhancing production in both the oil and non-oil sectors.
The asset management company emphasized the importance of the CBN’s communication strategy in elucidating the reasons behind the apex bank’s decisions, especially in addressing inflationary pressures through effective communication of the Monetary Policy Committee’s decisions.
Dr. Cardoso highlighted the necessity of interventions in Nigeria due to its expansive landmass and large population but emphasized the importance of avoiding failed intervention programs. He emphasized the need for a framework to ensure that interventions reach the intended beneficiaries, such as farmers and SMEs, in a meaningful and impactful manner.
He expressed the central bank’s commitment to convene with various stakeholders, both locally and internationally, to design effective intervention strategies and avoid the shortcomings of past initiatives.
As of October 2022, the apex bank had disbursed around N9 trillion as intervention funds.
