The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reiterated the apex bank’s commitment to establishing macroeconomic stability, fortifying the banking sector, and establishing Nigeria as a top investment destination.
Mr. Cardoso stated this during a fireside chat moderated by Andreas Voss, the Chief Country Representative, Deutsche Bank Nigeria, at the European Business Chamber (Eurocham Nigeria) C-Level Forum held in Lagos.
The CBN governor disclosed that the bank recapitalisation exercise is making good progress and will result in even stronger financial institutions that can withstand shocks and financial growth.
He stated that the key drivers of renewed investor confidence in the Nigerian economy were the CBN’s reforms and the stabilisation of the naira.
Cardoso observed that though headline inflation is currently elevated, however, it is decreasing as a consequence of collective efforts.
“It is anticipated that the advantages of the bank’s 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 stated
When asked about the impact of high lending rates in Nigeria on investment, the CBN governor acknowledged the concern but linked it to his previous statement regarding inflation and stability.
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He stated that there is a substantial potential for interest rates to decrease in the future 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 continued.
Cardoso observed that the CBN’s recapitalisation directive, which mandates that banks increase their minimum capital, is specifically intended to fortify the financial system and guarantee that it is capable of supporting a wider range of economic activities.
Also, he 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.
Cardoso identified the increased collaboration with the Ministry of Finance, the Ministry of Trade and Industry, and the Budget Office as a positive development.
He asserted that the collaboration will enable the country to maintain reforms and achieve long-term stability.
Regarding Nigeria’s position in the global economy, he stated that “the urgency of addressing our own affairs is underscored by the ongoing geopolitical changes.
“Nigeria is a market that is both large and appealing in its own right, and it is also situated at the entrance to the broader continent and West Africa.
“This underscores the importance of maintaining stability at home.”
In his introductory remarks, Eurocham President, Yann Gilbert, characterised the chamber as a conduit that links European businesses with Nigerian policymakers.
He stated that “our members are profoundly dedicated to this nation. We aspire to establish enduring partnerships, generate employment opportunities, and invest.”
The purpose of this forum is to foster engagement, dialogue, and solutions that enhance confidence and unleash opportunities between Nigeria and Europe.
