The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that inflation in Nigeria is gradually being brought under control due to the monetary policy measures implemented by the apex bank.
Cardoso made the disclosure during the Central Bank’s Monetary Policy Forum held in Abuja, where he addressed policymakers, economic experts, and private sector stakeholders on the state of the Nigerian economy.
According to him, decisive interventions by the Central Bank of Nigeria prevented inflation from rising significantly in 2024. He explained that without the policy actions taken by the bank, inflation could have surged to about 42.81 percent by December 2024.
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The CBN governor noted that throughout 2024, the Monetary Policy Committee adopted a series of aggressive measures to curb rising prices and stabilize the economy. These included raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent, tightening liquidity conditions in the financial system.
Other steps taken by the bank included increasing the Cash Reserve Ratio for deposit money banks to 50 percent, strengthening foreign exchange market reforms, and clearing a backlog of about $7 billion in foreign exchange obligations to restore market confidence.
Cardoso also pointed to improvements in foreign exchange inflows, particularly diaspora remittances through International Money Transfer Operators, which rose significantly in 2024.
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The reforms, he said, helped boost liquidity in the FX market and improve investor confidence.The CBN governor maintained that the bank would continue to rely on orthodox monetary policy tools to ensure price stability and protect the purchasing power of Nigerians.
He stressed that managing inflation requires close coordination between fiscal and monetary authorities, adding that sustained reforms are necessary to maintain macroeconomic stability and support economic growth.
Cardoso expressed optimism that the country is making progress toward disinflation, but cautioned that policymakers must remain vigilant to consolidate the gains and ensure inflation continues to moderate.
Image Credit: The sun.ng
Source: The sun.ng
