Mr. Cardoso said this on Tuesday, October 15, during a question and answer session at the 30th Nigeria Economic Summit in Abuja. The meeting addressed pressing issues surrounding Nigeria’s economy, monetary policy and rising inflation.
Discussing the country’s economic situation, Cardoso stressed that restoring economic fundamentals is critical to ensuring long-term stability.
Highlighting Nigeria’s economic challenges, Cardoso said, “I don’t think there is any substitute for economic fundamentals. Before we start talking about trade-offs, we need to agree that we have to make economic fundamentals work.” “There is,” he said.
He emphasized the need for efficient institutions and balanced supply and demand dynamics as key economic concerns.
“We need to get back to working on fundamentals,” Cardoso added, noting that without solid economic foundations, trade-offs only offer short-term solutions.
The Governor also mentioned recent monetary policy decisions, including raising interest rates from 26.75% to 27.25% and adjusting banks’ Cash Reserve Ratio (CRR).
He acknowledged that these policies aimed at curbing inflation are controversial.
But Cardoso remained adamant, pointing out that high inflation reduces purchasing power, discourages investment and ultimately affects the productive sector.
“Controlling inflation is key, because if we don’t contain it, there will be big setbacks. Inflation can hinder investment and significantly reduce purchasing power," he said.
Mr Cardoso expressed cautious optimism, suggesting a balanced approach would eventually allow interest rates to fall as inflation moderates, making it easier for businesses to prosper.
“We are hopeful that inflation will start to moderate and interest rates will start to come down,” he said, outlining the CBN’s long-term vision to stabilize Nigeria’s economic environment.
In his response, Mr. Cardoso reinforced the CBN’s commitment to economic stability and called for joint efforts to diversify Nigeria’s economy and achieve resilient growth, especially from oil dependence.
