CBN Reforms Stabilise Naira and Lower Lending Rates Amid Inflation Moderation
The Central Bank of Nigeria (CBN) has reported that its ongoing monetary policy tightening and structural reforms are beginning to stabilise the naira and ease lending rates, even as inflation shows signs of moderation. Speaking at a seminar for the Finance Correspondents Association of Nigeria (FICAN) in Lagos, Deputy Governor Emem Usoro said the reforms reflect a deliberate strategy to restore macroeconomic stability after years of fiscal and external pressures.
When Governor Olayemi Cardoso assumed office two years ago, Nigeria faced significant economic challenges. Inflation was rising sharply, the naira was volatile due to persistent foreign-exchange shortages, external reserves were depleted, and the financial system was burdened by FX backlogs and heavy reliance on federal financing. These conditions, Usoro noted, made it essential to implement disciplined, well-sequenced reforms.
Since then, the CBN has tightened compliance, strengthened bank governance, and advanced its recapitalisation program. These efforts, aligned with the government’s broader economic reforms, have begun to yield results. Inflation has eased to 16.05%, the exchange rate has stabilised below N1,500 per dollar, and external reserves have risen above $46 billion, providing over ten months of import cover.
The deputy governor highlighted that one of the most visible outcomes of the reforms is the reduction in lending rates, which she described as a tangible benefit of the CBN’s policy trajectory. She also emphasised the critical role of media in educating the public about these reforms, ensuring that Nigerians understand the long-term benefits of macroeconomic measures.
While acknowledging the progress, Usoro stressed that more work is needed to consolidate gains and improve living standards. She highlighted the importance of aligning fiscal and monetary policies in the era of digital finance and technological innovation, warning that misalignment could weaken investor confidence and inflation control. The central bank pledged to study recommendations from stakeholders to strengthen policy coordination and ensure long-term economic stability.
source: The Sun