ABUJA — The Central Bank of Nigeria (CBN) will sustain its current monetary tightening stance to safeguard stability in the financial system, Governor Olayemi Cardoso has said.
Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos over the weekend, Cardoso explained that although Nigeria’s inflation rate has slowed in recent months, pressures remain high, making it imperative for the apex bank to remain focused on price stability.
“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,” he said at a fireside chat moderated by Andreas Voss, Chief Country Representative of Deutsche Bank Nigeria.
According to the National Bureau of Statistics (NBS), headline inflation eased for the fourth consecutive month, dropping by 34 basis points to 21.88 percent in July 2025 from 22.22 percent in June.
Cardoso attributed the steady decline to coordinated monetary and fiscal policies, noting that the CBN’s measures have begun to yield results.
He acknowledged that high lending rates remain a challenge for businesses but stressed that interest rates would naturally decline as inflationary pressures continue to ease.
“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 said.
The apex bank chief also reaffirmed commitment to strengthening Nigeria’s banking sector through the ongoing recapitalisation exercise, describing it as “making good progress.” He said the initiative would create more resilient banks capable of withstanding shocks and driving economic growth.
Cardoso pointed to reforms, exchange rate stability, and closer coordination with fiscal authorities as key factors boosting investor confidence. He also highlighted the role of technology in expanding financial inclusion, reducing poverty, and deepening the fintech ecosystem.
“Our primary objective is to maintain stability while addressing inflation and ensuring that the financial system is resilient enough to support corporate lending and investment,” Cardoso added.
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