By Sesi Noah The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the Bank will stick with its tight monetary policy f...
By Sesi Noah
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the Bank will stick with its tight monetary policy for now in order to keep inflation in check and protect the financial system.
Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos, moderated by Andreas Voss of Deutsche Bank Nigeria, Cardoso explained that although inflation is still high, recent figures show it is gradually easing thanks to coordinated policy steps.
“We expect the benefits of our tightening stance to continue,” he said. “Our priority is to safeguard the stability we’ve restored in the financial system, while tackling inflation and ensuring the economy is resilient enough to support lending and investment.”
On concerns about steep lending rates, Cardoso admitted it was a challenge but emphasized that rates are closely linked to inflation and overall economic stability. He added that interest rates could come down as inflationary pressures ease.
“There’s a strong possibility that interest rates will drop in the future as inflation slows and as markets get better at allocating capital,” he noted.
The CBN Governor also stressed the Bank’s commitment to stabilising the economy, strengthening the banking sector, and making Nigeria a more attractive destination for investment. He confirmed that the ongoing recapitalisation of banks is on track and designed to build stronger, shock-resistant institutions that can finance growth.
Cardoso highlighted the reforms introduced by the CBN and the relative stability of the naira as key drivers of investor confidence, adding that European Union business leaders have acknowledged this progress.
On financial inclusion, he pointed to the importance of technology-driven solutions in broadening access to financial services, reducing poverty, and boosting the fintech ecosystem. He said the Bank is working to expand digital platforms to reach underserved communities.
He also welcomed the closer collaboration between the CBN and fiscal authorities like the Ministry of Finance, Ministry of Trade and Industry, and the Budget Office, saying such partnerships will help consolidate reforms and ensure lasting stability.
Reflecting on Nigeria’s global role, Cardoso stressed that maintaining domestic stability is critical at a time of shifting geopolitical dynamics. “Nigeria is not just a large and attractive market on its own,” he said. “It also serves as a gateway to West Africa and the wider continent.”
Eurocham President Yann Gilbert, in his opening remarks, described the Chamber as a bridge between European businesses and Nigerian policymakers. He said members are deeply committed to Nigeria and eager to build long-term partnerships, create jobs, and invest. “This forum is about fostering dialogue and finding solutions that will strengthen confidence and unlock opportunities between Nigeria and Europe,” he said.
Photo credit: Vanguard News
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