The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has reiterated that the apex bank will not revert to financing the federal government’s fiscal deficit.
The statement was made during the 60th Annual Bankers’ Dinner in Lagos, attended by top bankers, political leaders, and financial regulators.
Fiscal deficit financing allows the government to borrow directly from the CBN to cover budget shortfalls under strict conditions.
During the previous administration, the government reportedly drew N30 trillion in CBN overdrafts, of which about N23 trillion was later converted into a long-term bond.
Cardoso described that period as “reckless ways and means” and confirmed that the CBN has closed the door on such practices.
“Despite provisions in the CBN Act, we will not return to funding fiscal deficits,” Cardoso said.
The governor also highlighted the bank’s commitment to price stability and single-digit inflation, stressing that the current double-digit rate is unacceptable.
Headline inflation has declined from over 34% last November to 16.05% last month, the lowest in recent years, partly due to changes in the Consumer Price Index (CPI) base year and basket.
Looking ahead, CBN models predict continued disinflation into 2026, while the country’s external reserves have grown above $46 billion as of mid-November.
Cardoso noted that recent reforms have laid the groundwork for sustainable economic growth, emphasizing that progress is the result of “difficult choices, courage, and patience.”
Other speakers at the event reinforced the message of resilience and growth. Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), highlighted human capital development and initiatives to retain talent in the financial sector.
Oliver Alawuba, Chairman of the Body of Bank CEOs and Group Managing Director of UBA, emphasized the role of increased credit to the private sector in consolidating economic growth.
He also noted that banks are prepared for cash adequacy and seamless digital transactions during the upcoming festive season.
