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The Central Bank of Nigeria (CBN) has expressed concerns about the impact of global economic risks on Nigeria’s economy.
Speaking at after the bank’s 299th Monetary Policy Committee (MPC) meeting in Abuja today, the CBN Governor, Olayemi Cardoso, said , the ongoing war between Russia and Ukraine, as well as tensions in the Middle East, pose significant risks to global economic growth.
He warned that the adoption of increased tariffs by the US Trump’s administration may lead to higher inflation and slower growth in 2025.
Cardoso noted that despite these challenges, the International Monetary Fund (IMF) has maintained its global growth projections for 2025 and 2026 at 3.3% each.
To mitigate these risks, the Monetary Policy Committee has agreed to continue monitoring domestic and global developments to identify emerging risks and propose policy responses.
The CBN will also maintain its key interest rates to support economic growth.
Addressing concerns about the impact of elevated borrowing costs on economic growth, Cardoso assured that the CBN’s primary objective is to stabilize the foreign exchange and financial markets.
He expressed confidence that such stability would attract increased foreign investments, stimulating the much-needed economic growth.
He also highlighted the competitiveness of the Nigerian currency, which has spurred growing interest from international investors.
The MPC noted several factors expected to positively influence price dynamics in the near to medium term, including the stabilization of the foreign exchange market, the moderation of Premium Motor Spirit (PMS) prices, and the federal government’s efforts to improve security in food-producing areas.
The Committee emphasized the need for continued collaboration between monetary and fiscal authorities to maintain and build upon these gains.
