Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reaffirmed the apex bank’s commitment to a tight monetary policy stance, stating that the current approach is essential to maintaining macroeconomic stability and building resilience within the financial system.
Speaking at a fireside chat during the European Business Chamber (Eurocham Nigeria) C-Level Forum held over the weekend in Lagos, Cardoso said while inflation had begun to ease, the environment remained fragile and required consistent policy measures.
“It is anticipated that the advantages of the bank’s tightening posture will persist,” Cardoso said. “We will protect the stability that has been re-established in the financial system with the utmost zeal.”
According to the National Bureau of Statistics (NBS), headline inflation eased to 21.88% in July, marking the fourth consecutive monthly decline from 22.22% in June, 22.97% in May, and 23.71% in April 2025. The recent declines have been attributed largely to slowing food prices and coordinated policy responses from fiscal and monetary authorities.
Cardoso credited the downward inflation trend to ongoing reforms and said the CBN would maintain its tight policy stance until inflation is firmly under control. “Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring the financial system is sufficiently resilient to facilitate corporate lending and investment,” he noted.
High Lending Rates a Trade-off for Stability
Responding to concerns from the business community over rising borrowing costs, Cardoso acknowledged the pressure on businesses but maintained that inflation containment remains a top priority.
“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,” he said. “That is the environment in which stronger corporate lending and higher levels of investment will naturally follow.”
Bank Recapitalisation Making Headway
The CBN Governor also provided an update on the ongoing bank recapitalisation programme, describing it as a strategic move to bolster the resilience of the banking sector.
“The recapitalisation exercise is making good progress. It will result in stronger institutions that can withstand shocks and finance growth,” Cardoso said, adding that investor confidence has been lifted by a more stable exchange rate, improved policy coordination, and clearer regulatory signals.
Push for Financial Inclusion and Fintech Growth
Cardoso further highlighted the central bank’s efforts to deepen financial inclusion and harness the power of technology to improve access to credit and reduce poverty.
He said digital platforms were playing a growing role in expanding access to financial services, particularly in underserved and rural communities. “Our focus is on building a resilient financial system that supports growth, attracts investment, and secures Nigeria’s place as a leading investment destination,” he concluded.
The CBN Governor also pointed to stronger collaboration with the Ministry of Finance, Ministry of Industry, Trade and Investment, and the Budget Office, calling the alignment between fiscal and monetary authorities a “critical pillar” for sustaining economic reforms.