Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has said lending rates in the country may decline once inflation slows and markets allocate capital more efficiently.
Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos, Cardoso admitted that current high interest rates have limited investment, especially for businesses. He explained, however, that the CBN's aggressive monetary tightening was necessary to stabilise the naira and curb inflation.
"There is substantial potential for interest rates to decrease in the future as inflation continues to decline and as markets become more efficient in allocating capital," Cardoso said. "That is the environment in which stronger corporate lending and higher levels of investment will naturally follow."
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The CBN governor said recent rate hikes were already showing results, with inflation easing and stability returning to the financial system. He stressed that the bank's top priority is to safeguard stability while ensuring Nigerian banks remain resilient.
On Nigeria's global positioning, Cardoso described the country as a strategic and attractive market at the gateway to West Africa, underscoring the need to maintain stability to draw investment.
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