Cardoso: Inflation is real killer of businesses

The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has insisted that inflation was the real killer of businesses

He, however, explained measures to keep the figures low.

Nigeria’s inflation rate as at December 2024 is pegged at 34. 80 per cent.

Cardoso spoke during the launch of 2025 Macroeconomic Outlook Report, titled “Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond” by the Nigerian Economic Summit Group (NESG) on Thursday.

The governor, who participated virtually in the hybrid event held in Lagos, said that CBN would continue to strengthen financial institutions to ensure they effectively support the real sector, especially through the establishment of the National Credit Guarantee Company to de-risk lending to critical sectors.

He said that the apex bank was taking some painful but necessary decisions to right the wrongs to set Nigeria on growth path.

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He explained that inflation, which is the real killer of businesses, was projected to decline in 2025 as the impact of economic reforms begins to take effect.

“For example, a lot of people complain about the high interest rates and that’s killing the real sector. Yes, it is and a risk to the real sector.

“The truth of the matter is that the choices are very minimal. The anticipation is that this will be something that will be more short than longer lived.

“In fact, it’s important that people should understand that the real killer is the one on inflation which affects everybody as opposed to the interest rates on the real sector.

“So, I think back to the issue of continuous dialogue and having forums like this and publishing them widely so that people understand a lot better as to what the issues are,” he said.

Cardoso added that the growth is anchored on sustained implementation of government reforms, stable crude oil prices, improvements in domestic oil production, diaspora inflows, among others.

According to him, the apex bank is working tirelessly to find solutions to Nigeria’s economic challenges while expressing joy that ongoing reforms are yielding positive results.

He explained that investors were already flocking the nation but that CBN would not rest on its oars as it strives to tame inflation.

The Star