Abuja: The Central Bank of Nigeria (CBN) has revealed that its strategic policy interventions have played a crucial role in moderating inflationary pressures, which otherwise could have soared to 42.81 percent by December 2024. Yemi Cardoso, the CBN Governor, disclosed this during the 2025 Monetary Policy Forum held in Abuja, which witnessed participation from ministers, economic heads, and private sector representatives.
According to News Agency of Nigeria, Cardoso outlined that the CBN has been proactive in implementing orthodox monetary policy measures to control inflation throughout 2024. He highlighted that the CBN increased the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent and raised the Cash Reserve Ratio (CRR) by 1750 basis points to 50 percent. These decisive measures, taken over six Monetary Policy Committee meetings, have been pivotal in controlling inflation.
Cardoso further projected a significant rise in diaspora remittances, estimating them to reach N31.787 trillion with the release of fourth-quarter 2024 figures. The CBN has also embarked on financial system reforms, notably the establishment of a unified exchange rate window, which has enhanced efficiency in the foreign exchange market. This reform led to a 79.4 percent increase in remittances through International Money Transfer Operators, amounting to 4.18 billion dollars in the first three quarters of 2024, compared to 2.33 billion dollars during the same period in 2023.
Moreover, the CBN has cleared a backlog of foreign exchange commitments totaling seven billion dollars, thereby restoring market confidence and improving foreign exchange liquidity. Cardoso announced the lifting of restrictions on 41 items previously banned from accessing the official FX market since 2015 and introduced new minimum capital requirements for banks, effective March 2026, to strengthen Nigeria’s banking sector.
In a bid to promote financial inclusion, the CBN launched the WIFI initiative aimed at bridging the gender gap in financial access, empowering women with financial services, education, and digital tools. Cardoso also introduced the Nigeria Foreign Exchange Code, underscoring a commitment to integrity, transparency, and efficiency in the FX market.
Cardoso emphasized the necessity of sustained vigilance and proactive monetary policies to achieve macroeconomic stability in 2025. He stressed the importance of coordination between fiscal and monetary authorities to manage disinflation amidst persistent shocks, aiming to maintain investor confidence and anchor expectations.
Earlier at the forum, Mohammed Abdullahi, Deputy Governor of Economic Policy at the CBN, remarked on the liberalization of the foreign exchange market as a critical move towards unifying a fragmented system. He noted that this step significantly reduced exchange rate premiums, which dropped from an alarming 62.33 percent between January and May 2023 to 0.10 percent by June 2023, marking progress towards market convergence.