Cardoso recommits to macroeconomic stability, stronger banking sector
Omeiza Bilal
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reiterated the Bank’s commitment to establishing macroeconomic stability, fortifying the banking sector, and establishing Nigeria as a top investment destination.
Mr. Cardoso stated during a fireside chat moderated by Andreas Voss, Chief Country Representative, Deutsche Bank Nigeria, at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, that the recapitalisation exercise for banks is “making good progress” and will result in even stronger institutions that can withstand shocks and finance growth.
Key drivers of renewed investor confidence were the CBN’s reforms and the stabilisation of the naira, as extolled by members of the EU Chambers.
Cardoso observed that 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,” he stated.
“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.”
When asked about the impact of high lending rates in Nigeria on investment, the Governor acknowledged the concern but linked it to his previous statement regarding inflation and stability.
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.
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.
In his introductory remarks, Eurocham President Yann Gilbert characterised the chamber as a conduit that links European businesses with Nigerian policymakers.
He stated, “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.
