CBN withdraws policy guidelines over misinterpretation, other concerns

The Central Bank of Nigeria (CBN) has temporarily withdrawn its biennial Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines published on 17 September.

It cited instances of widespread misinterpretation and misrepresentation by stakeholders and the media as the reason for the withdrawal.

In a statement issued Friday, the CBN expressed concern over how certain aspects of the publication had been misconstrued, particularly by media outlets reporting on policies that had been updated or rendered obsolete since the cut-off date of 31 December 2023.

The apex bank reiterated that the document serves as a compendium of previously issued policies, many of which may no longer be in force.

“Some recent media publications have referenced aspects of the guidelines that refer to policy positions issued before 31 December 2023, which have since been revised,” the CBN stated.

It cited the Cyber Security Levy as an example—a policy suspended in May 2024 but erroneously reported as still being in effect based on the guidelines.

The bank stressed that such discrepancies undermine the intent of the document, which is designed to offer stakeholders a convenient reference for previously issued policies.

The CBN further clarified that the biennial guidelines are not new directives but a record of policies and circulars issued by the bank up to the stated cut-off date.

It noted that the publication itself explicitly provides avenues for stakeholders to seek clarification on any aspect of the document, as detailed on pages 147 and 148.

Additionally, the bank addressed specific technical misrepresentations, including reports erroneously linking the removal of fuel subsidies to Nigeria’s external reserves.

The CBN explained that these reports failed to grasp the analytical context of the original statement, which was meant to highlight a potential risk to be mitigated by policy, not to draw a direct causal link.

The CBN pointed out that recent policy measures regarding the Naira exchange rate and actions by fiscal authorities have positively altered the outlook, further demonstrating that the guidelines are a snapshot of policies as of the end of 2023.

The withdrawal, the CBN said, is a temporary measure aimed at minimising the risk of further misrepresentation.

The apex bank emphasised its commitment to providing clear and accurate monetary policy guidance, urging stakeholders to seek clarification before publishing any information related to the guidelines.

It assured that any subsequent amendments to its policies would be communicated through supplementary circulars as the domestic and global economic environment evolves.