The Central Bank of Nigeria (CBN) has reported that the nation’s digital payment systems have played a significant role in bolstering the economy’s resistance to external shocks. Deputy Governor of the CBN in charge of Economic Policy, Kingsley Obiora, expressed this sentiment during the fourth retreat of the Fiscal Liquidity Assessment Committee (FLAC) held in Abuja, an event organised by the CBN.
“The fiscal liquidity assessment was designed to foster cooperation between the fiscal and the monetary aspects of the country’s economic policy,” stated Obiora. He elaborated on the CBN’s response to the Covid-19 pandemic, saying, “The central bank responded to Covid by creating the central bank digital currency called the eNaira, which is Africa’s first digital currency. And we are very delighted that today a lot of central banks are coming on study tours to the CBN to understudy what we have done.”
Obiora described the eNaira platform as stable and responsive to monetary policy, citing the transcription mechanism of monetary policy as a crucial factor in controlling money supply and monetary policy.
Also speaking at the event, Dr. Hassan Mahmud, Director of Monetary Policy Department at the CBN, suggested that the bank’s varied policy interventions have invigorated operations and enhanced coordination between monetary and fiscal authorities. “The Central Bank continues to implement various quasi-fiscal measures to support the federal government’s effort to manage the general economy, address liquidity challenges, stimulate growth and ensure people-oriented programs,” he said.
Dr. Mahmud emphasized that the retreat’s theme, ‘Post-Pandemic Fiscal Stress and Monetary Policy Management in the Digital Age’, underscores the importance of reevaluating the current macroeconomic policy blend and its efficacy in the context of the unfolding digital transformation.