CBN implies the possibility of decreased interest rates because inflation subsides

Governor of the Central Bank Nigeria (CBN), Mr. Olayemi Cardoso, has indicated that interest rates can decrease in the coming months because inflation shows signs of moderation, the development is expected to facilitate access to credit and stimulate investment.

Cardoso made this disclosure on Saturday at the European C-Level Level Forum (Eurocham Nigeria) in Lagos on weekends.

The Governor of CBN reiterated the bank’s commitment to ensure macroeconomic stability, strengthen the banking sector, and position Nigeria as a leading investment goal.

“The main inflation, although it still increases, has begun to slow down, creating potential for lower interest rates after further price stability is consolidated,” Cardoso said.

“There is a substantial potential for future interest rates because inflation continues to decline and because the market becomes more efficient in allocating capital. That is the environment in which company loans are stronger and higher investment rates will follow naturally.”

Cardoso acknowledged that high interest rates have become a business burden but emphasize that the top priority of the bank has restored trust and resilience in the financial system.

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“We will protect the stability that has been rebuilt in the financial system with the highest spirit. Our main goal is to maintain that stability while simultaneously handling inflation and ensuring that the financial system is tough enough to facilitate the company’s loans and investment,” he said.

The CBN Governor also highlighted the progress in the ongoing bank recapitalization program, describing it as vital to build stronger financial institutions that are able to withstand shocks and support long -term economic growth.

He stressed that deepening financial inclusion and utilizing solutions driven by technology remains a top priority, noting that expanding access to fintech platforms and encouraging innovation will play an important role in overcoming poverty and bridging financing gaps.

Cardoso further appointed to improve coordination with fiscal authority as a positive change in the Nigerian policy landscape, quoting collaboration with the Ministry of Finance, the Ministry of Trade and Industry, and an important budget office for maintaining reforms and achieving long -term stability.

Regarding the broader Nigerian role in the global economy, Cardoso said the size of the country and strategic position in West Africa provides unique benefits. “Nigeria is a large and attractive market in itself, and is also located at the entrance of a wider continent and West Africa. This underlines the importance of maintaining stability at home,” he said.

CBN has held a stable monetary policy level at 27.50 percent in all its meetings this year, including those in February, May and July.