By Jemimah Wellington, JKNewsMedia Correspondent
THE CENTRAL Bank of Nigeria (CBN) has announced it will sustain its monetary tightening stance to safeguard stability in the financial system, Governor Olayemi Cardoso has confirmed.
Speaking at a fireside chat during the European Business Chamber (Eurocham Nigeria) C-Level Forum, moderated by Andreas Voss, Chief Country Representative of Deutsche Bank Nigeria (DBN), Cardoso explained that although inflation has slowed in recent months, pressures remain elevated, making continued focus on price stability essential.
He stated that the recent moderation in inflation was due to coordinated policy measures, adding that the apex bank’s firm stance would be maintained to consolidate 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.
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,” Cardoso said.
The National Bureau of Statistics reported that headline inflation eased by 34 basis points to 21.88 per cent in July from 22.22 per cent in June 2025, marking the fourth consecutive monthly decline.
The rate had fallen from 22.97 per cent in May to 22.22 per cent in June, an improvement of 75 basis points.
In April, inflation stood at 23.71 per cent, lower by 52 basis points compared to March when it had risen to 24.23 per cent from 23.18 per cent in February following the January rebasing.
Responding to concerns over the impact of lending rates on businesses, Cardoso acknowledged the challenge but linked it directly to inflation control and wider economic stability.
He projected that lending rates would ease once inflationary pressures subside. “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 governor reaffirmed the apex bank’s commitment to consolidating macroeconomic stability, strengthening the banking sector, and positioning Nigeria as a leading investment hub.
He disclosed that the ongoing recapitalisation exercise in the banking industry was progressing well and would produce stronger institutions able to withstand shocks and finance broader economic growth.
According to him, the exercise, which requires banks to raise their minimum capital base, was deliberately designed to enhance resilience in the financial system and expand support for diverse economic activities.
Cardoso highlighted reforms introduced by the bank and the relative stability of the naira as factors that had bolstered investor confidence, noting that members of the European Union Chambers had acknowledged these improvements.
On financial inclusion, he emphasised the role of technology-driven innovation in extending services to underserved populations, reducing poverty, and reinforcing the fintech ecosystem.
He said ongoing efforts were directed at leveraging digital platforms to widen access to financial services.
He further underlined the growing collaboration between the Central Bank and fiscal authorities, including the Ministry of Finance, the Ministry of Trade and Industry, and the Budget Office.
This cooperation, he said, was strengthening reform outcomes and helping to secure long-term macroeconomic stability.
