CBN to engage treasurers on inflation-fighting strategies

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, will engage finance and corporate treasury professionals in Nigeria and the United Kingdom (UK) on sustainable monetary policies and financial strategies adopted to address rising inflation and interest rate volatility.

The CBN boss will discuss critical treasury and economic issues considering current economic challenges at the 2024 Treasury360 Conference and Exhibition will be held on November 14, 2024, at the Muson Centre, Lagos.

The conference, organised by the Association of Corporate Treasurers in Nigeria (ACTN), is themed ‘Policy Implications and Building Sustainable Treasury Strategies: Nigerian Perspectives on Tackling Inflation and Interest Rate Uncertainty’.

Speaking yesterday at the media launch of the conference, the President/Chairman of the Council of ACTN, Adeyinka Ogunnubi, highlighted rising inflation and interest rate volatility as major concerns that require financial leaders and corporate treasurers to adopt more resilient and sustainable financial strategies as well as present practical solutions to guide the country through these uncertain times.

Ogunnubi emphasised the importance of planning and foresight in navigating Nigeria’s complex economic environment, noting that the theme for 2024 was chosen based on feedback from members who identified foreign exchange (FX) as a primary concern.

He explained how the unpredictability of FX rates has significantly impacted corporate operations, particularly in the budgeting processes that many companies are currently undertaking.

This unpredictability, he said, has been compounded by inflation and interest rate volatility, creating a challenging landscape for companies seeking stability in their financial planning.

“Most organisations right now are in their budgeting month, and they are considering how to predict the FX position going into 2024, while the impact of inflation cannot be overlooked,” he stated.

Ogunnubi said the economic shift has been particularly severe in the area of food inflation, which is nearing 40 per cent. Ogunnubi urged the government to focus on easing food inflation through measures such as improving transportation and ensuring a consistent food supply and storage, which he believes could have an immediate effect on overall inflation rates.

Addressing the broader regulatory environment, Ogunnubi recognised the CBN’s efforts to manage these challenges but noted that corporates continue to face significant headwinds, highlighting that both the government and financial institutions are working to balance competing pressures to stabilize the economy.

The Chairman of Programmes and Events for the ACTN, Benedict Ologbosere, shared insights into the critical challenges facing businesses, pointing to recent developments such as the downsizing of a major company set to lay off 1,000 of its 6,000 employees, stressing the widespread impact of such job losses on the economy.