The Central Bank of Nigeria (CBN) has urged financial institution treasurers to adopt proactive measures to safeguard the financial stability of their organizations.
This directive was conveyed by Muhammad Abdullahi, Deputy Governor of the Economic Policy Directorate, during the ninth annual Financial Markets Conference organized by the Financial Markets Association of Nigeria in Lagos.
The conference, themed “Global Economic and Domestic Outlook: Implications for Nigerian Treasurers,” highlighted the need for strategic positioning in response to evolving economic trends.
Represented by Omolara Duke, the CBN’s Director of the Financial Markets Department, Abdullahi emphasized that treasurers must adapt to the global economic climate, leveraging emerging opportunities to strengthen their institutions and positively influence the financial markets.
“So, (as) our distinguished treasurers, you bear the responsibility to relentlessly manage the ever-evolving opportunities and challenges presented by global dynamics and safeguard the financial health of your organisations.
“As treasurers and financial experts, you must recognise the interconnectivity of the global and economic system. The ability to tactically position treasury activities to manage the evolving global trend will have significant implications on our domestic markets,” he said.
Abdullahi noted that global inflation rates are expected to decline further by 2025, moving closer to central banks’ long-term inflation targets.
He commended the Financial Markets Dealers Association (FMDA) for its steadfast efforts in encouraging members to adopt and implement new policies, describing this as a testament to the association’s remarkable influence and resilience.
To stabilize the stock market and prevent inflation-driven asset bubbles, economist Bismarck Rewane emphasized the need for balanced monetary policies. He explained that higher interest rates could make fixed-income investments more attractive, potentially drawing funds away from the stock market.