The Governor of the Central Bank of Nigeria (CBN) has declared that the apex bank will sustain its current monetary tightening policy to protect stability in the nation’s financial system.
He explained yesterday that while the inflation rate has declined in recent periods, inflationary pressures still remain high, thus the need to maintain focus on price stability.
Cardoso spoke at a fireside chat moderated by Andreas Voss, Chief Country Representative of Deutsche Bank Nigeria, during the European Business Chamber (Eurocham Nigeria) C-Level Forum at the weekend.
According to him, the recent slowdown of inflationary trend was as a result of coordinated policy measures.
Cardoso said: “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.”
The National Bureau of Statistics (NBS) reported that headline inflation rate eased by 34 basis points to 21.88 per cent in July from 22.22 per cent in June 2025. It was the fourth consecutive decline.
Inflation rate had dropped from 22.97 per cent in May to 22.22 per cent in June, an improvement of 75 basis points.
Headline inflation rate had improved by 52 basis points to 23.71 per cent in April on the back of reduced food inflation. Composite inflation had for the first time after the January rebasing, risen by 105 basis points to 24.23 per cent in March as against 23.18 per cent recorded in February.
When asked about the impact of high lending rates on businesses, the CBN Governor admitted it was a concern but linked it directly to inflation management and broader economic stability.
He projected a decline in interest rates once inflationary pressures ease further.
Cardoso said: “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”.
