Cardoso restates commitment to banking stability 

Emma Ujah, Abuja Bureau Chief 

THE Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has restated his commitment to the nation’s banking sector stability. He spoke 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.

The ongoing banks’ recapitalisation exercise, the governor said, “is making good progress and will result in even stronger institutions that can withstand shocks and finance growth.”

Mr. Cardoso said he was working hard to make Nigeria a top investment destination.

He identified key drivers of renewed investor confidence as the CBN’s reforms and the stabilisation of the naira, as extolled by members of the EU Chambers.

The CBN boss described the current headline inflation as elevated; but decreasing as a consequence of collective efforts. 

“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,” he said. 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 was a substantial potential for interest rates to decrease in the future as inflation continued 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.

The Governor identified increased collaboration with the fiscal sector, which includes the Ministry of Finance, the Ministry of Trade and Industry, and the Budget Office as a major strategy of his administration. 

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