The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has noted that although Nigeria’s headline inflation is currently elevated, it is decreasing as a consequence of collective efforts.
Speaking during a fireside chat moderated by the Chief Country Representative for Deutsche Bank Nigeria, Mr Andreas Voss, at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos, he explained that 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,” he said.
In July 2025, Nigeria’s inflation moderated for the fourth consecutive month to 21.88 per cent, down from 22.22 per cent in June. However, on a month-on-month basis, prices in July rose 1.99 per cent compared to the preceding month’s 1.68 per cent.
Mr Cardoso also restated the CBN’s commitment to establishing macroeconomic stability, fortifying the banking sector, and establishing Nigeria as a top investment destination, noting the key drivers of renewed investor confidence were the apex bank’s reforms and the stabilisation of the Naira, as extolled by members of the EU Chambers.
Commenting on 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.
Mr 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, adding that the recapitalisation exercise for banks is on course and will result in a stronger financial system for the country.
He reiterated that the exercise is “making good progress and will result in even stronger institutions that can withstand shocks and finance growth.”
Nigerian banks have a March 2026 deadline to meet their recapitalisation targets in line with their spread, either internationally or locally, emphasising 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.
Regarding Nigeria’s position in the global economy, he stated, “The urgency of addressing our own affairs is underscored by the ongoing geopolitical changes.” Nigeria is a market that is both large and appealing in its own right, and it is also situated at the entrance to the broader continent and West Africa. This underscores the importance of maintaining stability at home.