CFG Advisory has called on the Central Bank of Nigeria (CBN) to immediately begin an inflation-targeting program and work towards reducing interest rates to stimulate economic growth.
Nigeria’s benchmark interest rate currently stands at 27.25 per cent—one of the highest across Africa. While several Sub-Saharan economies have moved to cut rates, the CBN has maintained its stance throughout the year, largely due to persistent inflation, which stood at 22.2 per cent in June despite a steady decline since March.
“The Central Bank should aim to reduce interest rates by the end of Q3 2025. This would help boost economic growth and combat inflationary pressures. By targeting an inflation rate of 12–14 per cent, historical data suggests that Nigeria can achieve an economic growth rate of 8–10 per cent,” the firm said.
According to the advisory, the nation’s GDP growth slowed from 3.8 per cent in Q4 2024 to 3.1 per cent in Q1 2025. It stressed the need for a coherent, growth-driven strategy that prioritises debt reduction and improved revenue generation. Nigeria’s total public debt now exceeds $100 billion, with a significant portion going towards servicing obligations.
“However, there are no threats of default, and funding is primarily through market securities as a way and means of financing from the CBN, since it has been discontinued,” it added.
To ease the debt burden and boost revenues, the group suggested optimising capital structure equity and increasing investments in non-oil exports, particularly agriculture.
“Sell Oil JV assets to raise $35–$40 billion, reducing debt and enhancing the balance sheet,” they advised.
CFG Advisory further emphasised that deep structural reforms, prudent fiscal planning, and a harmonised approach to monetary, fiscal, trade, and industrial policy are essential to achieve sustainable 8–10 per cent growth.
“Implementing these measures will restore purchasing power and lift Nigerians out of poverty,” it said.
