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CBN Policies Prevented 42.81% Inflation In 2024- Cardoso

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that inflation could have surged to 42.81% by December 2024 without the bank’s policy interventions.

Speaking at the 2025 Monetary Policy Forum, he also projected that diaspora remittances would reach N31.79tn when fourth-quarter 2024 figures are released.

The forum gathered ministers, economic agency heads, and private sector leaders.

Cardoso reaffirmed his commitment to orthodox monetary policies to curb inflation in 2025. He noted that counterfactual estimates indicate inflation would have hit 42.81% without decisive measures. Among the key policies implemented in 2024, he highlighted six Monetary Policy Committee decisions, including an 875-basis-point hike in the Monetary Policy Rate to 27.50%, a 1,750-basis-point increase in the Cash Reserve Ratio for Other Depository Corporations to 50.00%, and adjustments to the asymmetric corridor around the MPR.

Cardoso said, “Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024.

“Throughout 2024, the bank implemented several bold policy measures across six MPC meetings, including raising the Monetary Policy Rate by a cumulative 875 basis points to 27.50 per cent, increasing the Cash Reserve Ratio of Other Depository Corporations by 1,750 basis points to 50.00 per cent, and adjusting the asymmetric corridor around the MPR.”

The CBN governor emphasized that the apex bank implemented key foreign exchange reforms to boost market efficiency.

The unification of multiple exchange rate windows led to a 79.4% increase in remittances through International Money Transfer Operators, reaching $4.18bn in the first three quarters of 2024, compared to $2.33bn in the same period of 2023.

Other significant FX interventions included clearing a $7bn FX backlog, restoring market confidence and enhancing liquidity, lifting restrictions on 41 items barred from the official FX market since 2015, and setting new minimum capital requirements for banks—effective March 2026—to strengthen resilience and global competitiveness.

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