Nigeria’s Central Bank Governor has warned that despite recent economic gains, the country faces significant risks to stability, especially with elections looming next year.
Governor Yemi Cardoso told the National Economic Council Conference at the Presidential Villa that a large amount of liquidity remains in the system, and election year spending could destabilize the gains made by the Central Bank.
He said past interventions, reaching ₦10.93 trillion, provided short term support but also created long-term distortions and higher costs of liquidity management.
Cardoso also cautioned that monetary policy alone cannot stabilize the economy, highlighting food supply shocks, high energy costs, infrastructure deficits, and global trade tensions.
He stressed the critical role of state and local governments, whose management of spending, deficits, and investment affects inflation, liquidity, and growth.
