Nigeria to tighten policy to curb inflation, asks banks to boost capital

By Chijioke Ohuocha and Elisha Bala-Gbogbo

ABUJA (Reuters) – Nigeria’s central bank will tighten its policy over the next two quarters to manage inflation, while directing banks to boost capital to support an expansion of the economy, its new governor, Olayemi Cardoso, said on Friday.

Cardoso, who outlined his policy thrust told bankers that Nigeria could grow in size to $1 trillion over the next seven years and that lenders required additional capital to play in a bigger economy, he said in the commercial hub of Lagos, late on Friday.

He said he would focus on rebuilding trust at the regulator, manage liquidity to curb inflation, bring down high interest rates and stabilise the exchange rate.

“The Central Bank of Nigeria is fully committed to ensuring price stability and financial system stability,” Cardoso said.

Source link