CBN Has Retracted its Monetary Policy Document.
The Central Bank of Nigeria (CBN) has announced the temporary withdrawal of its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024 – 2025, which were published on September 17, 2024. This decision aims to reduce the risk of misrepresentation or misinterpretation that could lead to confusion among stakeholders.
In a statement released on its website on Friday, the CBN clarified that the revocation of the document was necessary to address misunderstandings regarding its content. Notably, the new release was not signed by any official from the bank, raising questions about its authenticity.
Earlier excerpts from the policy document indicated that the CBN would maintain Ways and Means Advances to the Federal Government at a five percent limit for the upcoming fiscal years. This stance contradicts a recent bill passed by the National Assembly, which increased the maximum borrowing percentage from five percent to ten percent.
Another contentious point in the guidelines was the proposed reinstatement of the cybersecurity levy, which had been suspended earlier this year following significant public backlash. The CBN, however, emphasized that these guidelines were misinterpreted by some media outlets as new policies.
The bank reiterated that the guidelines were merely a compilation of previously established policies and directives, effective until December 31, 2023. It also noted that certain policies referenced in the document had been revised or replaced with more recent updates.
In its statement, the CBN expressed concern over instances of misinterpretation or misrepresentation related to its biennial publication. To mitigate any further confusion, the bank decided to withdraw the document temporarily.
The CBN concluded by stressing that the publication serves as a guide for stakeholders, clarifying that it is a compilation of earlier policies and guidelines issued up to a specific cut-off date, typically December 31 of the relevant year.
