CBN Chief Predicts When Stability Becomes Growth

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has offered an assurance to Nigerians, stating that the gains secured through the country’s current monetary stability will soon begin to translate into tangible economic impact. His optimism is rooted in what he describes as strengthening investor confidence.

Cardoso delivered this message on Tuesday while briefing journalists in Abuja following the 303rd meeting of the CBN’s Monetary Policy Committee (MPC).

His remarks address a widespread concern among citizens who note that while official inflation figures recently declined to 16.05%, the high cost-of-living pressures have yet to ease significantly.

Responding directly to questions on the timeline for relief, the CBN Governor emphasized that the benefits of the monetary policy reforms being implemented are part of a deliberate, multi-stage process that will gradually reflect in everyday economic realities.

“To my mind, this is the core of the matter. To the extent that we have accomplished stability, it is a very fundamental process on the road to growth,” Cardoso stated, emphasizing the crucial role of stability as a prerequisite for development.

He detailed the sequential path the economy must follow: “Many years ago, there was instability in our market. Now we have moved to a situation where there is stability. After stability comes investment, and after investment comes growth.”

Cardoso noted that in some sectors, the stages of investment and growth may even occur concurrently. He referenced recent data, pointing out that “there has been growth” recorded in the last couple of quarters.

He reiterated that achieving stability has fundamentally bolstered the confidence of foreign and domestic investors. This renewed trust will, in turn, spur the necessary investment that he believes will ultimately address consumer issues.

“I am almost certain that you will begin to see what I am talking about,” he predicted, affirming that the current policy path is designed for longevity. “What we need is stable and enduring growth, not short-term fixes.”

The CBN’s briefing followed the MPC’s decision to maintain the benchmark Monetary Policy Rate (MPR) at 27%, alongside all other key monetary parameters, signaling a commitment to the current policy posture despite the decline in the inflation rate.