How CBN Prevented Nigeria’s Inflation From Surging to 42.81% – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that the apex bank’s strategic policy interventions successfully curbed inflation, preventing it from skyrocketing to 42.81% by December 2024.

Speaking at the 2025 Monetary Policy Forum in Abuja, Cardoso emphasized that the CBN remains committed to orthodox monetary policies to maintain economic stability in 2025.

Key CBN Measures That Curbed Inflation

According to Cardoso, the CBN took bold steps throughout 2024, implementing decisive policies in six Monetary Policy Committee (MPC) meetings. These measures included:

• Raising the Monetary Policy Rate (MPR) by 875 basis points to 27.50%.
• Increasing the Cash Reserve Ratio (CRR) for Other Depository Corporations by 1,750 basis points to 50.00%.
• Adjusting the asymmetric corridor around the MPR to enhance liquidity management.

“Without these critical interventions, inflation could have surged to 42.81% by December 2024,” Cardoso stated.

Foreign Exchange Reforms and Diaspora Remittances

Cardoso also highlighted the impact of foreign exchange (FX) reforms, which significantly boosted Nigeria’s financial system. Key FX interventions included:

• Unifying multiple exchange rate windows, leading to a 79.4% increase in diaspora remittances, rising to $4.18 billion in the first three quarters of 2024 from $2.33 billion in the same period in 2023.
• Clearing a $7 billion FX backlog, restoring market confidence and liquidity.
• Lifting restrictions on 41 previously banned items from accessing the official FX market.
• Introducing new minimum capital requirements for banks, effective March 2026, to enhance resilience and global competitiveness.

CBN’s Financial Inclusion and Transparency Initiatives

The apex bank also launched key initiatives to promote financial inclusion and transparency, including:

• Women’s Financial Inclusion Framework (WIFI) under the National Financial Inclusion Strategy, aimed at bridging the gender gap by providing women with financial services, education, and digital tools.
• The Nigeria Foreign Exchange Code, designed to uphold integrity, transparency, and efficiency in the FX market.

Cardoso reaffirmed that the financial sector remains committed to rebuilding trust and boosting investor confidence through these reforms.

With these interventions, the CBN has positioned Nigeria for sustained economic stability, preventing inflation from spiraling out of control while enhancing financial resilience and investor confidence.

Tags