The Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, has raised hopes for reduced lending rates in the coming months as inflation shows signs of easing, potentially boosting credit access and investment.
Speaking at a fireside chat during the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, Cardoso outlined the CBN’s commitment to fostering macroeconomic stability and positioning Nigeria as a prime investment destination.
In a statement released by the CBN on Sunday, Cardoso noted that while headline inflation remains high, its slowdown could pave the way for lower lending rates once price stability strengthens.
“There is substantial potential for interest rates to decrease as inflation continues to decline and markets become more efficient in allocating capital,” he said, adding that such conditions would encourage stronger corporate lending and increased investment.
Acknowledging the burden of high lending rates on businesses, Cardoso emphasized the CBN’s focus on restoring confidence and building a resilient financial system.
“We will protect the stability re-established in the financial system with utmost zeal,” he stated, underscoring the bank’s dual focus on controlling inflation and ensuring a robust financial sector to support economic growth.
Cardoso highlighted the ongoing bank recapitalization exercise as a vital step toward creating stronger financial institutions capable of withstanding economic shocks and financing growth.
He also stressed the importance of technology-driven solutions and financial inclusion, noting that fintech platforms and innovation are central to reducing poverty and addressing financing gaps.
The governor pointed to improved collaboration with fiscal authorities, including the Ministry of Finance, Ministry of Trade and Industry, and the Budget Office, as a key factor in sustaining reforms and achieving long-term stability.
He also emphasized Nigeria’s strategic role in West Africa and beyond, given its size and location. “Nigeria is a large and appealing market, situated at the entrance to the broader continent,” Cardoso said, stressing the need for domestic stability amid global geopolitical shifts.
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