CBN Governor Says Recapitalisation Policy Has Strengthened Banks
By Oluwakemi Kindness
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the Bank’s recapitalization policy, is expected to support the realisation of 1 trillion dollars economy by 2030.
This was as he said the Bank’s recapitalization policy has prompted banks to strengthen their financial positions, a process expected to result in a more robust and resilient banking sector by March 2026.
Cardoso who stated this during an interactive session with the House of Representatives Committee on Banking Regulations, chaired by Mohammed Bello-El-Rufai, outlined the Bank’s plans to address the rising inflation in the country.
Latest report from the National Bureau of Statistics (NBS) reveals a surge in Nigeria’s headline inflation, rising to 32.7% in September 2024, up from 32.15% in the previous month. This change is driven largely by the rising petrol costs nationwide.
“In addition, we have adopted an Inflation-Targeting (IT) monetary policy framework as part of the Bank’s Enterprise Strategy (2024 2028).
“The IT framework, widely adopted across various global economies, is renowned for its effectiveness in combating persistent inflation.
“These integrated measures are aimed at stabilizing prices, optimizing liquidity management, and engendering an effective monetary policy framework.
On the macroeconomic performance for 2024, Cardoso said projections indicate a growth rate of 3.2% and 3.3% for 2024 and 2025 respectively.
He added that Nigeria is projected to maintain a more robust 4.3% growth rate.
Similarly, he said the Industrial sector has shown remarkable improvement, with its growth rate surging to 3.53% from 0.31%.
He pointed out that the contribution of agriculture to total GDP also increased. In addition, the growth rate of the sector rose to 1.41%, from a negative territory of -0.90%, indicating a substantial turnaround in productivity.
For the Chairman, House Committee on Banking Regulations, Mohammed Bello-El-Rufai, he commended the efforts of the Central Bank of Nigeria CBN at implementing policies aimed at stabilizing the economy.
He said the Yemi Cardoso administration has implemented a series of ground- breaking measures aimed at enhancing market transparency, improving financial stability, fostering a more secure investment environment amongst others.
El-Rufai admitted that the CBN Governor is faced with the daunting task of steering the nation’s monetary policy amidst a challenging economic landscape.
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