By Olaitan Ibrahim
The Central Bank of Nigeria (CBN) has confirmed that the country’s Deposit Money Banks (DMBs) remain resilient despite facing significant external and internal challenges.
CBN Governor, Mr. Yemi Cardoso, disclosed this in Abuja on Tuesday during the presentation of a communiqué from the 298th Monetary Policy Committee (MPC) meeting.
According to Cardoso, the MPC expressed satisfaction with the banking system’s stability and resilience, which has been sustained in the face of economic pressures. He highlighted that key financial indicators such as the Capital Adequacy Ratio (CAR), Non-Performing Loan ratio (NPL), and Liquidity Ratio (LR) remain robust.
“The Central Bank will maintain close surveillance of the banking system to ensure continued compliance with regulatory thresholds and safeguard the industry’s health,” Cardoso said.
Cardoso also outlined the MPC’s focus on addressing inflationary pressures, stabilizing the exchange rate, and anchoring inflation expectations. He noted that headline inflation rose to 33.88% year-on-year in October, up from 32.70% in September, driven by increases in food and core inflation components.
“Food inflation surged to 39.16% in October from 37.77% in September, while core inflation rose to 28.37% from 27.43% over the same period,” Cardoso said.
Despite these increases, the MPC acknowledged moderation in farm produce prices and commended the Federal Government’s efforts to boost agricultural productivity.
Nigeria’s economic recovery also showed positive momentum, with real Gross Domestic Product (GDP) growing by 3.46% year-on-year in Q3 2024. Growth was driven by both the oil and non-oil sectors, with the services sector making significant contributions.
“The non-oil sector grew by 3.37% in the third quarter compared to 2.80% in the second quarter, while the oil sector grew by 5.17% year-on-year,” Cardoso stated.
Additionally, Nigeria’s external reserves recorded a marginal increase, rising to $40.88 billion as of November 21, compared to $40.06 billion at the end of October. The reserves are sufficient to finance 17 months of imports.