The governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reiterated the bank’s commitment to establish macroeconomic stability, strengthen the banking sector and establish Nigeria as a higher investment destination.
Mr. Cardoso declared this during a chat next to the fire moderated by Andreas Voss, main representative of the country, Deutsche Bank Nigeria, in the forum of level C of the European Chamber of Business (Eurocham Nigeria) in Lagos during the weekend.
He pointed out that the recapitalization exercise for banks is “making good progress” and will result in even stronger institutions that can resist clashes and financial growth, noting that the key promoters of the confidence of renewed investors were the reforms of the CBN and the stabilization of the Naira, as exalted by members of the EU cameras.
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Cardoso observed that the main inflation is currently high; However, it is decreasing as a result of collective efforts, and it is anticipated that the advantages of the bank’s hardening position will persist.
“We will protect the stability that has been restored in the financial system with the maximum zeal,” he said. “Our main objective is to maintain that stability while simultaneously addresses inflation and ensure that the financial system is resistant enough to facilitate corporate loans and investment.”
When asked about the impact of high loan rates in Nigeria on investment, the governor recognized concern, but linked it to his previous statement regarding inflation and stability.
He said that there is substantial potential for interest rates to decrease in the future as inflation continues to decrease and the markets become more efficient in the capital allocation.
“That is the environment in which the strongest corporate loans and higher investment levels will follow naturally,” he continued.
Cardoso observed that the CBN recapitalization directive, which requires banks to increase their minimum capital, intends to strengthen the financial system and ensure that it is capable of supporting a broader range of economic activities.
It also emphasized the importance of technology -driven solutions to deepen access and address poverty, as well as efforts to expand financial inclusion and strengthen the Fintech ecosystem.
He identified a positive development in the form of greater collaboration with the fiscal sector, which includes the Ministry of Finance, the Ministry of Commerce and Industry and the Budget Office.
This collaboration will allow the country to maintain reforms and achieve long -term stability.
With regard to Nigeria’s position in the global economy, he declared: “The urgency of addressing our own issues is underlined by continuous geopolitical changes. Nigeria is a market that is large and attractive for its own right, and is also found at the entrance to the wider continent and Western Africa. This rises to the importance of maintaining stability in the home.”
In his introductory comments, the president of Eurocham, Yann Gilbert, characterized the Chamber as a conduit that links European companies with Nigerian political leaders.
He declared: “Our members are deeply dedicated to this nation. We aspire to establish lasting associations, generate employment opportunities and invest.”
The purpose of this forum is to promote commitment, dialogue and solutions that improve trust and unleash opportunities between Nigeria and Europe..
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