Central Bank Governor Olayemi Cardoso is working to lower the cost of capital following three years of monetary reforms. The central bank inherited a weakened monetary system marked by excess liquidity, FX distortions, and collapsing confidence. Cardoso is now focusing on turning this stability into more affordable capital for businesses and investors.
The reforms have aimed to stabilize the naira and restore investor confidence. Recent measures have helped reduce inflation and improve the value of the naira. However, the cost of borrowing remains high, limiting access to capital for many businesses. Cardoso’s current strategy involves structural adjustments to make credit more accessible.
The central bank has been addressing FX distortions by managing foreign exchange reserves and regulating the flow of capital. These efforts have contributed to a more stable financial environment. Yet, the challenge remains in making credit affordable without compromising economic stability. The next phase of reforms will focus on balancing affordability with sustainability.
