The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has charged Nigerians to embrace the economic fundamentals to tame inflation.
Addressing a panel on Tuesday, October 15, Cardoso urged Nigerians to recognise the importance of these fundamentals as central to economic stability.
“We need to go back to addressing the fundamentals,” Cardoso declared, underscoring the importance of strong economic foundations. He stressed that while trade-offs may offer temporary relief, they lack sustainable impact without structural economic reform.
Cardoso further addressed recent CBN policy adjustments, such as increasing interest rates from 26.75% to 27.25% and altering the Cash Reserve Ratio (CRR). He acknowledged that these policies have sparked debate, particularly as high inflation continues to diminish purchasing power and deter investment.
“Taming inflation is key because if you do not tame it, it has a major throwback,” Cardoso warned. “It can deter investment and significantly reduce purchasing power.”
The CBN governor expressed cautious optimism that a balanced approach could pave the way for lowered interest rates, allowing businesses to thrive as inflation begins to moderate. “We hope that as inflation begins to moderate, interest rates start to come down,” he noted.
Calling for unity in tackling Nigeria’s economic challenges, Cardoso highlighted the need for a diversified economy, especially moving away from oil dependency. “Getting the fundamentals right is essential for resilient growth,” he added.
Cardoso’s statements reinforce the CBN’s commitment to economic stability, encouraging Nigerians to work collaboratively toward a balanced, prosperous economy.
