Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has stated that without the bank’s policy measures, inflation in the country could have reached 42.81% by December 2024.
Speaking at the 2025 Monetary Policy Forum, which gathered key government officials, economic experts, and private sector representatives, Cardoso noted that the CBN took decisive steps throughout 2024 to control inflation and stabilize the economy.
He explained that during the year, the CBN implemented strong monetary policies, including raising the Monetary Policy Rate (MPR) by a total of 875 basis points to 27.50%.
Additionally, the Cash Reserve Ratio (CRR) for Other Depository Corporations was increased by 1,750 basis points to 50.00%, while the asymmetric corridor around the MPR was also adjusted.
Cardoso stated, “Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024.”
The CBN governor also noted that the bank carried out crucial foreign exchange (FX) reforms to improve market efficiency.
One of these reforms was the unification of multiple exchange rate windows, which led to a 79.4% rise in remittances from International Money Transfer Operators, reaching $4.18 billion in the first three quarters of 2024—an increase from $2.33 billion in the same period of 2023.
Other significant FX-related interventions included clearing a $7 billion backlog, which helped restore market confidence and improve FX liquidity. The bank also removed restrictions on 41 items that had been banned from accessing the official FX market since 2015.
Furthermore, new minimum capital requirements for banks were introduced, set to take effect in March 2026, to strengthen the banking sector’s resilience and global competitiveness.
In an effort to promote financial inclusion, the CBN launched the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy. This initiative is designed to close the gender gap in financial access by providing women with essential financial services, education, and digital tools.
Additionally, the Nigeria Foreign Exchange Code was introduced to promote integrity, transparency, and efficiency in the FX market. Cardoso described this code as a binding commitment by the financial sector to rebuild trust and boost investor confidence.
On inflation control, Cardoso noted that managing disinflation amid ongoing economic challenges would require close coordination between fiscal and monetary authorities. He stressed the importance of maintaining price stability, transitioning to an inflation-targeting framework, and adopting measures to restore purchasing power and reduce economic hardships.
He expressed optimism about Nigeria’s economic future, stating that the country had made significant progress in stabilizing inflation. However, he also warned that sustaining these improvements would require bold and coordinated policy actions.
Cardoso further noted that global capital flows to emerging markets could improve as advanced economies adjust their monetary policies. However, he added that Nigeria’s ability to attract investment would depend on the confidence investors have in domestic economic reforms, macroeconomic stability, and positive returns on investments.
