CBN highlights Nigeria’s economic progress, interest rate cut in September

CBN highlights Nigeria’s economic progress, interest rate cut in September

Abdullateef Fowewe

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has emphasised that true economic resilience is never achieved through a single decision but through consistent reform, credible policy, and the trust that follows, reflecting on key developments in September.

For the first time in five years, Nigeria’s Monetary Policy Committee lowered interest rates by 50 basis points to 27 percent, a decision supported by “five consecutive months of disinflation, stronger reserves, and renewed confidence in Nigeria’s financial system.”

The Governor in a statement shared on Monday via X, detailed several engagements aimed at reinforcing economic progress, including meetings with J.P. Morgan’s senior executives, where the bank signaled plans for significant expansion in Nigeria as “an important signal of renewed global confidence in our financial markets and regulatory reforms.”

At the Eurocham Nigeria Business Forum in Lagos, discussions focused on improving Nigeria’s investment climate alongside inflation and recapitalisation.

Reflecting on financial sector resilience, Cardoso cited participation in the CIBN Annual Banking and Finance Conference and collaboration with Fintech NGR to “future-proof payments, deepen inclusion, and harness AI for faster, safer, and more inclusive financial services.”

Key economic indicators revealed optimism: headline inflation dropped to 20.12%, external reserves strengthened to over $43 billion covering more than eight months of imports, and the current account surplus increased to $5.28 billion in Q2.

He also announced that 14 banks have fully met recapitalisation requirements, marking “a major step toward a stronger financial system.”

On international collaboration, he noted that Nigeria has established a joint technical committee with Brazil to enhance monetary policy and financial regulation cooperation.

At the 7th OIC-COMCEC Central Banks Forum in Istanbul, Cardoso underscored discussions on global economic trends and bilateral talks with Turkey’s Central Bank, calling the partnerships “vital to advancing sustainable growth, enhancing financial resilience, and deepening cooperation across our economies.”