The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has commended the apex bank’s policy interventions, stating that the apex bank prevented Nigeria’s inflation rate from surging to 42.81% by December 2024. Looking ahead to 2025, Cardoso reaffirmed the CBN’s commitment to orthodox monetary policies to curb inflation.
Speaking at the 2025 Monetary Policy Forum in Abuja on Thursday, Cardoso highlighted the bank’s decisive measures throughout 2024. These included raising the Monetary Policy Rate (MPR) by 875 basis points to 27.50%, increasing the Cash Reserve Ratio for Other Depository Corporations by 1,750 basis points to 50.00%, and adjusting the asymmetric corridor around the MPR.
“Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024,” Cardoso noted.
Surge in Diaspora Remittances
Cardoso also projected a significant increase in diaspora remittances, estimating that figures for the fourth quarter of 2024 would push total remittances to ₦31.79 trillion.
He attributed this rise to foreign exchange reforms that improved market efficiency, particularly the unification of multiple exchange rate windows. As a result, remittances via International Money Transfer Operators surged by 79.4%, reaching $4.18 billion in the first three quarters of 2024, compared to $2.33 billion in the same period in 2023.
Key Foreign Exchange Reforms
The CBN Governor outlined several major foreign exchange (FX) interventions aimed at restoring confidence and liquidity in the market:
- Clearing a $7 billion FX backlog, which improved investor confidence and market stability.
- Lifting restrictions on 41 items that had been barred from accessing the official FX market since 2015.
- Introducing new minimum capital requirements for banks, effective March 2026, to enhance resilience and global competitiveness.
Additionally, the Nigeria Foreign Exchange Code was introduced to ensure integrity, transparency, and efficiency in the FX market. Cardoso described it as a binding commitment by the financial sector to rebuild trust and boost confidence.
Financial Inclusion and Women Empowerment Initiatives
The apex bank also launched the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy. This initiative aims to bridge the gender gap in financial access by empowering women with financial services, education, and digital tools.
Conclusion
Cardoso commendation to CBN’s proactive monetary policies and foreign exchange reforms in 2024 for its crucial role in reducing inflation, stabilizing Nigeria’s economy, and boosting investor confidence. With a strong commitment to orthodox monetary policies in 2025, the apex bank aims to sustain these gains while fostering financial inclusion and strengthening the banking sector. As Nigeria navigates economic challenges, the success of these interventions will be pivotal in achieving long-term stability and growth.
