Audio By Carbonatix
Nigeria's central bank will do whatever is necessary to tame double-digit inflation but expects price pressures to moderate and interest rates to drop in the not-too-distant future, Central Bank of Nigeria (CBN) governor said on Thursday.
Inflation, at 33.95% in May, and a weaker currency have helped fan a cost-of-living crisis in one of Africa's largest economies, eroding incomes and angering citizens.
The central bank is under pressure from businesses who say high interest rates are stunting growth, but governor Yemi Cardoso said the monetary policy committee would not be driven by emotion in its rate decisions.
At its last sitting in May, the bank raised the main lending rate to 26.25% (NGCBIR=ECI), opens new tab, the third increase this year. The next rate decision is on July 23.
"These (MPC) are people who are not given to emotion. What they look at is data and they basically go along with what the data says," Cardoso told business leaders in Lagos.
"The major issue is taming inflation...and they would do whatever is necessary to tame inflation."
Inflation in Nigeria has been driven in large part by high money supply, Cardoso said, adding that the federal government borrowed too much from the central bank, which itself was involved in quasi-fiscal activities.
Under President Bola Tinubu, who came into office last year, the government and the CBN say they have stopped such practices.
"It has its consequences...and in large respect, that's what we are paying for now," Cardoso said.
But "in the not too distant future things will moderate and interest rates will begin coming down," he added.
Latest Stories
-
Ghana’s used-vehicle import reforms are necessary, but the policy needs fine-tuning
11 minutes -
MTN enhances MoMo security as daily transactions hit 23 million
13 minutes -
Ghana Gas delivers strong 2025 results with 97% profit growth; Jinapor urges continued investment
19 minutes -
COPEC welcomes GH¢2 diesel subsidy but urges gov’t to pursue long-term fuel strategy
24 minutes -
Writers must tell Africa’s story through literature and local languages – Vice President to PAWA Ghana delegation
29 minutes -
Stop harassing opposition, Ghana is bigger than any party – Minority to gov’t
34 minutes -
The Supreme Court has Opened the Door. Parliament must now Reform Ghana’s Political Finance Architecture
35 minutes -
GoldBod debunks claim of GH¢200m loss, says Dominic Bonsu was not Sammy Gyamfi’s bodyguard
37 minutes -
BoG warns against 20 unlicensed mobile loan apps
45 minutes -
Mahama orders strategic plan to double TOR capacity, end political interference
49 minutes -
Mahama directs review of TOR’s dollar-based crude oil payments
53 minutes -
Betterland Ghana denies illegal mining allegations
58 minutes -
AGI opens nominations for 15th Ghana Industry and Quality Awards
1 hour -
Fire destroys storage room at Pokuasi, no casualties recorded
1 hour -
BOSTenergies donates GH₵1m to Ghana Medical Trust Fund for critical healthcare support
1 hour