By Udeme Clement

In a bid to build a strong capacity on monetary policy and financial management in the economy, the Central Bank of Nigeria (CBN) is partnering with the West African Institute for Financial and Economic Management (WAIFEM) for capacity building in the financial sector.

Speaking at the opening ceremony of the course on, ‘Economic analysis, monetary policy and financial management for the staff of CBN’, the Head, CBN’s Learning Centre in Lagos, Dr. Job Olorunshola, said that the programme was necessary to further equip the participants on the importance of monetary policy and financial management, especially now that the nation’s economy needs effective coordination of these policies to enhance tangible development.

Speaking, the Director General of WAIFEM, Prof. Akpan Ekpo, explained that the main objectives of the course were to upgrade the skills of participants in the formulation of monetary policies and conduct of effective monetary operations, as well as financial stability. “The course covers recent developments in money market operations, including the response of Central Banks to the recent financial market turbulence. It also examines how monetary operations interact with a central bank’s financial stability and regulatory mandates”, he said.

According to him, “Economic analysis helps to understand the functions of the economy and the forces that impel the choices people make under the constraints they face. Much of economic theory is based on the predictability of behaviour. Though it is possible to observe actions and their consequences, observation and descriptions alone are not sufficient to understand them and predict outcomes. Economic theories explain important variables as the output, prices, consumption of goods and services, the level of employment, saving and investment, but appropriate capacity building needs to be carried out for the various synergies among these variables and sectors of the economy to be highlighted, perhaps monitored on a sustainable level.”

He added, “The recent global economic challenges have made it necessary for organisations involved in economic management to build and strengthen their indigenous capacity for policy making and analysis. This stems from the realisation that effective policy design by economic planners require that they should be adequately equipped with the requisite tools and techniques of economic analysis to enable them handle prevailing economic situations.

“Given the recent reforms in the CBN geared toward ensuring a sound and stable financial system, it is only rational that these reforms be complemented with appropriate capacity building programmes required to synergise the bank’s institutional reform agenda. The analytical techniques involved in the work of the apex bank require constant updating on the movements within the economy at national, sub-regional and international levels. The techniques often adopted in economic analysis are the building blocks for macroeconomic management. Therefore, the course is designed to sharpen the analytical skills and competences of participants in the making of economic policies and management”.