Embrace economic fundamentals to tackle inflation – Cardoso
Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has urged Nigerians to focus on economic fundamentals as the key to combating inflation. Speaking at the 30th Nigeria Economic Summit in Abuja on October 15, Cardoso highlighted the importance of rebuilding the country’s economic base to ensure lasting stability.
Addressing the current economic challenges, Cardoso stated, “There is no substitute for the fundamentals. Before we consider trade-offs, we must first get the core of our economy working.” He stressed the need for efficient institutions and a balanced supply-demand structure as crucial elements to restoring the economy’s foundation.
Cardoso also touched on the recent monetary policy adjustments, including the increase in interest rates from 26.75% to 27.25% and changes to the Cash Reserve Ratio (CRR). While these moves sparked debate, he defended them as necessary measures to combat inflation, which he warned erodes purchasing power, discourages investment, and weakens the productive sector.
“Taming inflation is essential. If left unchecked, it has serious repercussions, from deterring investment to significantly reducing purchasing power,” Cardoso explained. He expressed cautious optimism, suggesting that as inflation moderates, interest rates would be lowered to create a more business-friendly environment.
Cardoso reiterated the CBN’s long-term commitment to stabilizing the economy, emphasizing that Nigeria must diversify away from its reliance on oil and embrace broader economic reforms to achieve resilient growth.
