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The Central Bank of Nigeria (CBN) has raised concerns over the potential impact of global economic uncertainties on the country’s economic stability.
Speaking after the bank’s 299th Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Olayemi Cardoso highlighted key global risks, including the ongoing Russia-Ukraine conflict and escalating tensions in the Middle East, which could significantly affect global economic growth.
Cardoso also warned that the implementation of increased tariffs by the U.S. under the Trump administration could lead to rising inflation and slower global growth in 2025.
Despite these uncertainties, he noted that the International Monetary Fund (IMF) has retained its global growth projections at 3.3% for both 2025 and 2026.
To navigate these challenges, the MPC has resolved to closely monitor both domestic and international developments, proactively identifying risks and formulating appropriate policy responses.
The CBN also reaffirmed its commitment to maintaining key interest rates to support economic stability and foster sustainable growth.
Addressing concerns over high borrowing costs, Cardoso emphasized that the central bank’s primary focus remains on stabilizing the foreign exchange and financial markets. He expressed confidence that achieving stability would attract increased foreign investments, ultimately driving economic growth.
He further highlighted the increasing competitiveness of the Nigerian currency, which has piqued the interest of global investors.
The MPC identified several factors expected to positively influence inflation trends in the near to medium term, including foreign exchange market stabilization, moderating Premium Motor Spirit (PMS) prices, and government efforts to enhance security in food-producing regions.
The Committee underscored the importance of continued collaboration between monetary and fiscal policymakers to sustain and build on these economic gains.
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