Nigeria’s central bank is prepared to utilize any necessary strategies to combat rising inflation, according to its governor, Olayemi Cardoso. Speaking at the FT Africa Summit in London on Tuesday, Cardoso highlighted the urgency of addressing the country’s inflation, which reached 32.70% in September, marking the first increase in three months due to escalating food and energy prices.
The recent rise in inflation has been exacerbated by the government’s removal of petrol and electricity subsidies, along with two devaluations of the naira since President Bola Tinubu took office last year. Cardoso indicated that while he expects overall inflation to moderate in the coming months, food inflation remains stubbornly high. He assured attendees that the central bank is working closely with the government to tackle these ongoing challenges.
Emphasizing the need for continued reforms, Cardoso noted that Nigeria is attracting “growing and serious interest” from foreign investors, citing recent visits from top executives including Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon. “There’s an enormous amount of interest now, recognizing that the Nigerian currency has been relatively moderated, making our economy much more competitive,” he stated.
Since Tinubu’s administration began, the naira has lost significant value, currently worth only a quarter of what it was, while fuel prices have surged fivefold. Cardoso expressed confidence that the central bank’s measures to restore investor confidence are yielding positive results, with complaints about foreign exchange access now at a “minimal” level compared to previous times when only a select few could obtain currency.
He noted that the foreign exchange market is now deeper and more accessible than before. Nigeria’s foreign exchange reserves have exceeded $40 billion, and Cardoso revealed plans to enhance transparency by sharing updates on net reserves starting in early 2025.
Looking ahead, Cardoso suggested that economic growth might remain moderate next year, aligning with a World Bank estimate of around 3.6% for 2025, up slightly from an expected 3.3% this year. He concluded, “With the reforms being implemented now, Nigeria will be in a far better position to see growth increase.”
