By Uzair Adam
The Central Bank of Nigeria (CBN) has assured that the country’s Deposit Money Banks (DMBs) remain resilient amid ongoing internal and external economic challenges.
CBN Governor Yemi Cardoso made this known on Tuesday in Abuja while presenting the communiqué from the 298th meeting of the Monetary Policy Committee (MPC).
Cardoso stated that the MPC commended the sustained stability of the banking system despite various economic headwinds.
“Key financial soundness indicators, such as the Capital Adequacy Ratio (CAR), Non-Performing Loan ratio (NPL), and Liquidity Ratio (LR), continue to reflect the strength of the sector,” he said, adding that the CBN will maintain close monitoring to ensure banks adhere to regulatory thresholds and remain healthy.
The MPC also highlighted the CBN’s ongoing efforts to deepen financial inclusion, aiming to enhance the effectiveness of monetary policy transmission.
Addressing inflation, Cardoso noted that data from the National Bureau of Statistics (NBS) revealed a rise in headline inflation to 33.88% in October, up from 32.70% in September.
On a month-on-month basis, inflation increased to 2.64% in October from 2.52% in the previous month.
Food inflation climbed to 39.16% in October from 37.77% in September, while core inflation rose to 28.37%, compared to 27.43% in the preceding month.
Despite the inflationary trend, the MPC observed a slight moderation in the prices of farm produce and commended the Federal Government’s efforts to boost productivity in the agricultural sector.
On economic growth, Cardoso disclosed that Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in the third quarter of 2024, driven by both the oil and non-oil sectors.
The non-oil sector expanded by 3.37%, while the oil sector recorded a 5.17% growth.
Additionally, Nigeria’s external reserves increased to $40.88 billion as of November 21, up from $40.06 billion at the end of October, providing enough to finance 17 months of imports.