The Central Bank of Nigeria (CBN) has stated that without its decisive policy measures, inflation in the country could have soared to 42.81% by December 2024.
CBN Governor Olayemi Cardoso made this revelation on Thursday at the 2025 Monetary Policy Forum in Abuja, where he addressed ministers, economic policymakers, and private sector leaders.
According to Cardoso, the CBN implemented key policy interventions throughout 2024 to stabilize the economy, including raising the Monetary Policy Rate (MPR) by 875 basis points to 27.50% and increasing the Cash Reserve Ratio (CRR) for banks by 1,750 basis points to 50.00%.
“Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81% by December 2024,” Cardoso stated.
He also highlighted the CBN’s efforts in foreign exchange (FX) market reforms, which led to a 79.4% increase in diaspora remittances through International Money Transfer Operators (IMTOs), rising to $4.18 billion in the first three quarters of 2024 from $2.33 billion in the same period in 2023.
Other key interventions included:
Clearing a $7 billion FX backlog to restore market confidence and improve liquidity.
Lifting restrictions on 41 items previously banned from accessing official FX markets since 2015.
Introducing new minimum capital requirements for banks, effective March 2026, to strengthen financial resilience.
Launching the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy to bridge the gender gap in financial access.
Introducing the Nigeria Foreign Exchange Code to enhance transparency and efficiency in FX transactions.
Cardoso reaffirmed the CBN’s commitment to transitioning from unorthodox to orthodox monetary policies, aimed at restoring investor confidence and prioritizing price stability.
He also emphasized that managing inflation amid economic shocks would require close collaboration between fiscal and monetary authorities.
Encouragingly, he noted, Nigeria’s FX liquidity is improving, the naira is gradually stabilizing, and macroeconomic conditions are becoming more predictable, fostering a conducive environment for production, exports, and essential imports.