Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), said that if there is no bank policy intervention, in December 2024, Nigeria’s inflation rate will soar to 42.81 %.
At the Monetary Policy Forum in 2025, Cardoso outline several bold measures taken by Apex Bank to deal with economic challenges, and at the same time predicted the significant growth of remittances of the diaspora.
Cardoso said: “Anti -fact estimation shows that without these decisive policy interventions, by December 2024, the inflation rate may reach 42.81 %.” He further explained that in 2024, CBN was in six monetary policy committees ( Key policies were implemented at MPC). These include increased the monetary policy interest rate (MPR) 875 basis points to 27.50 %. Increase the cash reserve ratio of other deposit companies by 1,750 basis points to 50.00 %, and adjust the asymmetric corridor around MPR.
Cardoso emphasized the impact of banking efforts and pointed out that when the remittances of scattered diaspora are expected to rise to 3.1.79 trillion N3.179 trillion, the number in the fourth quarter was released to 2024. He will increase the reform of market efficiency, including a unified exchange rate window. This unification has led to an increase of 79.4 % through international remittance operators, reaching $ 4.18 billion in the first three quarters of 2024, and in the same period of 2023, the same period was 2.33 billion US dollars.
The forum brings together ministers, heads of economic institutions and leaders of private sector, and also emphasized the main intervention measures related to foreign exchange related to foreign exchange. Among them, including removing $ 7 billion in FX backlogs to restore market confidence and increase FX liquidity, cancel the restrictions on 41 projects that have not been banned from entering the official FX market since 2015, and put forward new minimum capital requirements for banks. In order to improve toughness and global competitiveness, it takes effect March, 2026.
Cardoso emphasizes the importance of policy coordination in managing inflation. “He said:” Management dissolution in continuous impact will require strong policy coordination between finance and currency authorities. The focus must be maintained in terms of price stability, the planning of the planned inflation target framework, and the strategy of restoring purchasing power and alleviating economic difficulties “” “
He expressed an optimistic attitude towards Nigeria’s economic trajectory, and pointed out that the country has turned and the dissolution has reached the scope. However, he emphasized that bold and coordinated measures are needed to consolidate progress. Cardoso also pointed out that global capital flows to emerging markets can improve because developed economies alleviate monetary policy, but Nigeria’s ability to attract inflows will depend on investors’ confidence in domestic reform, macroeconomic stability and positive investment returns.
He said that the transition of CBN from non -orthodox to orthodox monetary policy aims to restore confidence, enhance policy reputation, and give priority to price stability. Cardoso launched the Nigerian Foreign Exchange Law to ensure the integrity, transparency and efficiency of the FX market. He said: “This code is a binding commitment that the financial sector has a binding trust in rebuilding and improving confidence.”
In addition, CBN launched the WIFI initiative based on the national financial inclusive strategy to bridge the gender gap of financial access by providing financial services, education and digital tools for women.
Cardoso concludes by reiterating that CBN is committed to creating a favorable environment for the development of inclusive economy. He said: “Realizing the stability of macroeconomic stability requires continuous vigilance and positive monetary policy positions.”
