{"id":9811,"date":"2026-08-27T11:41:20","date_gmt":"2026-08-27T11:41:20","guid":{"rendered":"https:\/\/ograsset.com\/?p=9811"},"modified":"2026-08-27T11:41:21","modified_gmt":"2026-08-27T11:41:21","slug":"cbns-priority-is-macro-stability-not-portfolio-investment-analysts","status":"publish","type":"post","link":"https:\/\/ograsset.com\/index.php\/2026\/08\/27\/cbns-priority-is-macro-stability-not-portfolio-investment-analysts\/","title":{"rendered":"CBN\u2019s priority is macro stability, not portfolio investment \u2014 Analysts"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

CBN\u2019s priority is macro stability, not portfolio investment \u2014<\/strong> Analysts<\/strong><\/p>\n\n\n\n

Nigeria\u2019s monetary policy should not be viewed as a choice between attracting foreign portfolio investments and supporting local businesses, as the Central Bank of Nigeria\u2019s primary responsibility is to maintain macroeconomic stability, according to Director of Deals Advisory at PwC, Wale Olusi.<\/p>\n\n\n\n

Olusi said the CBN\u2019s decision to keep interest rates elevated was driven by its efforts to stabilise inflation and the broader economy, rather than a deliberate attempt to attract foreign portfolio investments.<\/p>\n\n\n\n

\u201cThat is the job of the central bank. They target job  stabilisation of the macroeconomy, which<\/p>\n\n\n\n

they have achieved,\u201d Olusi said.<\/p>\n\n\n\n

\u201cInitially, people were searching for dollars, but the CBN has stabilised the FX market. It has now reduced inflation,\u201d he added.<\/p>\n\n\n\n

The CBN has maintained its Monetary Policy Rate at 26.5 per cent since cutting it by 50 basis points in February, even as inflation has continued to moderate.<\/p>\n\n\n\n

The  tight  monetary  stance  has,  however,  kept  borrowing  costs  high  for  businesses,  with manufacturers facing lending rates of between 25 per cent and 35 per cent.<\/p>\n\n\n\n

At the same time, high domestic interest rates have increased the attractiveness of Nigerian fixed- income assets to foreign portfolio investors.<\/p>\n\n\n\n

PwC data showed that foreign portfolio investors accounted for almost all of Nigeria\u2019s $10.37bn capital inflows in the first quarter of 2026. Olusi said the CBN\u2019s focus was neither on attracting portfolio investors nor on cutting interest rates simply to make borrowing cheaper.<\/p>\n\n\n\n

\u201cWhen the current administration came to power, people were complaining about inflation. What<\/p>\n\n\n\n

they have done is to reduce inflation and achieve macroeconomic stability,\u201d he said.<\/p>\n\n\n\n

He added that further rate cuts could become possible once inflation is sufficiently contained.<\/p>\n\n\n\n

\u201cMaybe when the inflation is reduced, CBN can decide to cut rates. But for now, the interest is<\/p>\n\n\n\n

neither to attract portfolio investments nor cut rates,\u201d Olusi said.<\/p>\n\n\n\n

An emerging markets expert, Ike Ibeabuchi, explained that though monetary policy administrators appear to be facing dilemma, there is really no such thing.<\/p>\n\n\n\n

\u201cThe role of the CBN is to maintain price stability, set monetary policy, and manage the naira and<\/p>\n\n\n\n

FX market to achieve stability. Once you do all these, investors will come. It is not rocket science.<\/p>\n\n\n\n

\u201cSo, you will not find any central bank governor targeting portfolio investors only with policies. Maybe that can happen on the fiscal side. But it is difficult for you to target portfolio investors or other types of investors without doing the basic jobs of the central bank.\u201d<\/p>\n\n\n\n

Source: https:\/\/punchng.com\/cbns-priority-is-macro-stability-not-portfolio-investment-analysts\/<\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

CBN\u2019s priority is macro stability, not portfolio investment \u2014 Analysts Nigeria\u2019s monetary policy should not be viewed as a choice between attracting foreign portfolio investments and supporting local businesses, as the Central Bank of Nigeria\u2019s primary responsibility is to maintain macroeconomic stability, according to Director of Deals Advisory at PwC, Wale Olusi. Olusi said the… <\/p>\n

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