CBN reassures investors on economic stability, stronger banking sector

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has reaffirmed the Bank’s commitment to sustaining macroeconomic stability, strengthening the banking sector, and positioning Nigeria as a leading investment destination.

Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, Cardoso said the ongoing recapitalisation exercise for banks was “making good progress” and would result in stronger institutions capable of financing growth and withstanding shocks.

The event, moderated by Andreas Voss, Chief Country Representative of Deutsche Bank Nigeria, brought together top executives from European businesses operating in Nigeria.

Cardoso noted that investor confidence had been buoyed by recent CBN reforms and the relative stabilisation of the naira, which EU chamber members highlighted as a positive shift.

While acknowledging that inflation remains elevated, he stressed that it is easing due to coordinated policy measures.

“We will protect the stability that has been re-established in the financial system with the utmost zeal,” he said.

“Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring that the financial system is sufficiently resilient to support corporate lending and investment.”

On lending rates, the CBN governor conceded that they remain high but expressed optimism that rates would trend downward as inflation continues to fall and capital allocation improves.

He explained that the recapitalisation directive, which requires banks to raise their minimum capital base, is aimed at strengthening the financial system to better support wider economic activities. Cardoso also underscored the importance of technology-driven financial solutions, fintech growth, and expanding financial inclusion to tackle poverty.

Highlighting increased collaboration between the monetary and fiscal authorities, including the Finance Ministry, Ministry of Trade and Industry, and the Budget Office, Cardoso said such partnerships were essential to sustaining reforms and ensuring long-term economic stability.

On Nigeria’s global outlook, he observed that geopolitical shifts made it even more urgent for the country to consolidate its economic foundations.

“Nigeria is a large, attractive market, strategically located at the gateway to West Africa.

“This makes stability at home all the more critical,” he said.

Eurocham President, Yann Gilbert, praised Nigeria’s reform efforts, describing the chamber as a bridge between European investors and Nigerian policymakers.

“Our members are profoundly dedicated to this nation.

“We want to build enduring partnerships, create jobs, and invest,” Gilbert said.

The Eurocham forum served as a platform for dialogue between European businesses and Nigerian authorities on strategies to strengthen confidence and unlock opportunities for growth.