The Central Bank of Nigeria (CBN) has temporarily withdrawn its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025, citing misinterpretation and misrepresentation by stakeholders.
In a statement on its website, the CBN clarified that the guidelines, published on September 17, 2024, were misunderstood as new policies, whereas they are a compilation of previously issued policies and directives effective until December 31, 2023.
“The attention of the Central Bank of Nigeria has been drawn to certain instances of misinterpretation or misrepresentation of its biennial publication… In response, the CBN has temporarily withdrawn the document to minimize risk of any further misrepresentation,” the statement read.
Controversy had surrounded the guidelines, particularly the proposed 5% limit on Ways and Means Advances to the Federal Government, contrary to the National Assembly’s bill raising the limit to 10%. Additionally, the reinstatement of the cyber security levy, earlier suspended due to public backlash, sparked concerns.
However, the CBN emphasized that some policies mentioned in the guidelines have been revised or replaced by newer updates. For instance, the Cyber Security Levy was suspended in May 2024, superseding the circular reported in the guidelines.
*Key Clarifications:*
– _Misrepresentation:_ Certain technical aspects of the guidelines were widely misreported, such as linking fuel subsidy removal to external reserves.
– _Policy Updates:_ The CBN’s policies around the Naira exchange rate and those of the fiscal authorities have positively altered the outlook.
– _Guideline Purpose:_ The document is a record of policies, circulars, and directives issued by the bank up to the end of 2023, not new directives.
The CBN urged stakeholders to seek clarification before publishing information about the bank, reiterating its commitment to providing clear monetary policy direction for the economy’s overall good ¹.
