The Central Bank of Nigeria (CBN) is taking decisive steps to address the issue of double-digit inflation in the country. Governor Yemi Cardoso assured that the central bank would do whatever is necessary to tame inflation, which stood at 33.95% in May, contributing to a cost-of-living crisis in Nigeria.
Despite pressure from businesses to lower interest rates, the CBN has emphasized that its rate decisions will be based on data rather than emotion. In its recent meeting, the bank raised the main lending rate to 26.25%, marking the third increase this year. The next rate decision is scheduled for July 23.
Cardoso attributed the high inflation in Nigeria to factors such as high money supply and excessive borrowing by the federal government from the central bank for quasi-fiscal activities. However, under President Bola Tinubu, steps have been taken to curb such practices.
Looking ahead, Cardoso expressed optimism that inflation would moderate in the near future, leading to a reduction in interest rates. This strategic approach aims to stabilize the economy and ensure sustainable growth in Africa’s largest economy.
As Nigeria navigates the challenges of high inflation and economic reforms, the CBN remains committed to implementing measures that will promote stability and prosperity for its citizens.
