The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has stated that inflation in Nigeria would have soared to 42.81 percent by December 2024 without the bank’s policy interventions.
Speaking at the 2025 Monetary Policy Forum, Cardoso outlined several bold measures taken by the apex bank to address economic challenges, while also projecting significant growth in diaspora remittances.
“Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 percent by December 2024,” Cardoso said. He further explained that throughout 2024, the CBN implemented critical policies across six Monetary Policy Committee (MPC) meetings. These included raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent, increasing the Cash Reserve Ratio for Other Depository Corporations by 1,750 basis points to 50.00 percent, and adjusting the asymmetric corridor around the MPR.
Highlighting the impact of the bank’s efforts, Cardoso noted that diaspora remittances were expected to rise to N31.79 trillion when the fourth-quarter figures for 2024 are released. He attributed the increase to reforms aimed at enhancing market efficiency, including the unification of multiple exchange rate windows. This unification led to a 79.4 percent rise in remittances via International Money Transfer Operators, reaching $4.18 billion in the first three quarters of 2024 compared to $2.33 billion during the same period in 2023.
The forum, which brought together ministers, heads of economic agencies, and private sector leaders, also highlighted other major foreign exchange-related interventions by the CBN. These included clearing a $7 billion FX backlog to restore market confidence and improve FX liquidity, lifting restrictions on 41 items previously banned from accessing the official FX market since 2015, and introducing new minimum capital requirements for banks to enhance resilience and global competitiveness, effective March 2026.
Cardoso emphasized the importance of policy coordination to manage inflation. “Managing disinflation amid persistent shocks will require strong policy coordination between fiscal and monetary authorities. The focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” he said.
He expressed optimism about Nigeria’s economic trajectory, stating that the country had turned a corner and disinflation was within reach. However, he stressed the need for bold and coordinated measures to consolidate progress. Cardoso also noted that global capital flows to emerging markets could improve as advanced economies ease monetary policies, but Nigeria’s ability to attract inflows would depend on investor confidence in domestic reforms, macroeconomic stability, and positive real returns on investment.
The CBN’s transition from unorthodox to orthodox monetary policies, he said, aimed to restore confidence, strengthen policy credibility, and prioritize price stability. Cardoso introduced the Nigeria Foreign Exchange Code as part of efforts to ensure integrity, transparency, and efficiency in the FX market. “This code is a binding commitment by the financial sector to rebuild trust and boost confidence,” he said.
Additionally, the CBN launched the WIFI initiative under the National Financial Inclusion Strategy to bridge the gender gap in financial access by empowering women with financial services, education, and digital tools.
Cardoso concluded by reaffirming the CBN’s commitment to creating an enabling environment for inclusive economic development. “Achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance,” he said, emphasizing the bank’s role in ensuring Nigeria’s economic resilience and growth.
