CBN faces tough choices as inflation, weak growth dominate agenda for 297th MPC meeting
…As CBN prioritises leadership with Keystone Bank board overhaul
By Esther Agbo
The Central Bank of Nigeria (CBN) has scheduled its 297th Monetary Policy Committee (MPC) meeting for September 23 and 24, 2024, at its headquarters in Abuja. This pivotal meeting comes at a time when Nigeria is grappling with stubborn inflation and sluggish economic growth, presenting the CBN with a tough balancing act.
In a statement released on Wednesday, the CBN disclosed that the two-day meeting would focus on a comprehensive review of the nation’s economic and financial conditions, with the goal of setting the most appropriate monetary policy direction for the near and medium-term future.
The statement partly read, “This is to inform you that the 297th meeting of the Monetary Policy Committee is scheduled to be held as indicated: Day 1: Monday, September 23, 2024 Time: 10:00 am. Day 2: Tuesday, September 24, 2024 Time:8:00 am.”
As inflation remains a pressing issue, soaring to 29.9 percent in January 2024 from 28.9 percent in December 2023, many are watching to see how the CBN will respond. The depreciation of the naira, exacerbated by persistent shortages of foreign exchange, has heightened price pressures across various sectors of the economy.
This trend has been a key concern in previous MPC meetings, where the committee adopted a tight monetary stance, raising the Monetary Policy Rate (MPR) to rein in inflation.
However, while inflation has dominated policy discussions, weak economic growth continues to pose significant challenges. The CBN faces growing pressure to support economic recovery while simultaneously managing inflationary risks. The recent depreciation of the naira has only complicated this task, as it creates further uncertainty in the financial markets.
Market observers are keen to see whether the CBN will maintain its tight monetary stance or adopt a more accommodative approach to spur growth. The equities market has shown resilience in 2024, and many investors are optimistic, but they remain cautious as the MPC’s decisions could significantly impact market dynamics.
…As CBN prioritises leadership with Keystone Bank board overhaul
Meanwhile, in a bid to reinforce financial stability and enhance corporate governance, the Central Bank of Nigeria (CBN) has announced a significant restructuring of the board of Keystone Bank.
This decision, unveiled on Wednesday, is part of a broader initiative aimed at fostering long-term growth and resilience within the nation’s banking sector.
At the helm of this restructuring is Lady Ada Chukwudozie, a seasoned business leader and industrialist, who has been appointed as the new board chairman.
Her appointment, alongside five non-executive directors and two executive directors, signals the CBN’s focus on bringing experienced professionals to steer the bank through a challenging economic landscape.
Lady Chukwudozie’s extensive experience in business strategy, drawn from her roles in major corporate entities like Dozzy Group, Vogue Afrique Magazine and the Manufacturers Association of Nigeria, places her in a strong position to guide Keystone Bank through its next phase of growth.
The diversity of expertise represented on the new board is set to provide fresh perspectives in key areas such as risk management, compliance, and investment strategy, critical to the bank’s sustained success.
The newly constituted board also includes Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello. Collectively, these professionals bring decades of expertise across finance, law, risk management, and business development, with experience in top-tier institutions like Fidelity Bank, Afrinvest, Shell, and Guaranty Trust Bank.
The Central Bank’s decision to restructure the board comes at a time when Nigerian banks are grappling with economic uncertainties, making seasoned leadership a crucial factor in navigating risks and seizing new opportunities.
By appointing experienced hands to steer the bank, the CBN is setting the stage for Keystone Bank to better position itself for growth in an increasingly competitive market.
In addition to the non-executive directors, the CBN also named Ladi Oluwole and Abubakar Usman Bello as executive directors, tasked with overseeing risk management and operations in the Northern region, respectively. Both bring with them extensive backgrounds in banking and enterprise risk management.
Keystone Bank’s Managing Director and CEO, Hassan Imam, expressed optimism about the new appointments, highlighting their collective experience as pivotal to the bank’s future strategy.
He said, “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.
“We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience.”
