Mr. Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has admitted that the decision to raise the interest rate to 27.75% is painful for borrowers but necessary to address Nigeria’s inflation crisis. Speaking at the Harvard Club of Nigeria event in Lagos, themed Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation, Cardoso emphasized that tough decisions must be made for long-term stability.
Cardoso explained that the interest rate hike was crucial to limit cash in circulation and curb inflation, noting, “While higher interest rates are tough on borrowers, they are needed to control inflation and secure long-term economic gains.” He stressed the importance of effective leadership, adding that short-term comfort cannot be prioritized over sustainable solutions.
The CBN Governor also outlined the need to rebuild trust in the apex bank. Under his leadership, the CBN has implemented the Electronic Foreign Exchange Matching System (EFEMS) to ensure transparency and eliminate dubious foreign exchange practices. Cardoso reiterated, “Trust is the currency of central banking. Without it, our policies lose their effectiveness.”
9am News Nigeria recalls that the CBN, under Cardoso, has raised interest rates five times, a series of moves aimed at tackling Nigeria’s inflation problems, particularly food inflation.
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