CBN Governor Underscores Dedication to Economic Stability and Robust Banking Reforms

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has once again affirmed the institution’s unwavering focus on achieving macroeconomic stability, bolstering the resilience of the banking sector, and positioning Nigeria as a premier hub for global investments.

This pledge was outlined in an official statement from the CBN’s Acting Director of the Corporate Communications Department, Hakama Sidi-Ali. 

Cardoso shared these insights during a candid fireside chat, facilitated by Andreas Voss, Chief Country Representative for Deutsche Bank Nigeria, at the European Business Chamber (Eurocham Nigeria) C-Level Forum held in Lagos.

Highlighting ongoing initiatives, Cardoso noted that the bank recapitalization efforts for Nigerian financial institutions are advancing steadily, paving the way for more fortified banks capable of enduring economic turbulence while driving sustainable growth.

According to him, key drivers of renewed investor confidence are the CBN’s reforms and stabilisation of the Naira, as extolled by members of the EU Chambers.

Cardoso said that headline inflation was currently elevated.

“However, it is decreasing as a consequence of collective efforts. It is anticipated that the advantages of the CBN tightening posture will persist.

“We will protect the stability that has been re-established in the financial system with the utmost zeal.

“Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring that the financial system is sufficiently resilient to facilitate corporate lending and investment,” he said.

On the impact of high lending rates on investment, the CBN governor said that there was a substantial potential for interest rates to decrease in the future.

According to him, this will happen as inflation continues to decline and as markets become more efficient in allocating capital.

“That is the environment in which stronger corporate lending and higher levels of investment will naturally follow,” he said.

Cardoso said that the CBN’s recapitalisation directive, which mandated banks to increase their minimum capital, was specifically intended to fortify the financial system.

He said that it would also guarantee that the financial system was capable of supporting a wider range of economic activities.

He also emphasised the importance of technology-driven solutions in order to deepen access and address poverty, as well as efforts to expand financial inclusion and fortify the fintech ecosystem.

The CBN governor identified a positive development in the form of increased collaboration with the fiscal sector, which includes the Ministries of Finance, Industry, Trade and Investment and the Budget Office.

“This collaboration will enable the country to maintain reforms and achieve long-term stability,” he said.

NAN