January 22, (THEWILL) — The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said that the apex bank’s tight monetary policy stance has helped reduce Nigeria’s inflation rate by about 10 percentage points, underscoring the impact of aggressive interest-rate tightening over the past year.
Cardoso said the policy measures, including sharp increases in the Monetary Policy Rate (MPR) and liquidity management tools, were aimed at restoring price stability, anchoring inflation expectations, and supporting macroeconomic stability.
He noted that inflationary pressures had eased following sustained tightening, after peaking amid currency adjustments, subsidy reforms, and supply-side shocks.
According to the CBN governor, the decline in inflation reflects improved monetary transmission, moderation in excess liquidity, and early signs of stability in the foreign exchange market.
He added that while progress has been made, inflation remains elevated and requires continued vigilance.
Cardoso emphasised that the central bank will maintain a data-driven approach, balancing inflation control with the need to support economic growth and financial system stability.
He also acknowledged that the impact of tight policy has been felt across households and businesses, particularly through higher borrowing costs.
Nigeria’s inflation trajectory remains a key focus for policymakers and investors, with future monetary policy decisions expected to hinge on incoming inflation data, exchange-rate dynamics, and broader macroeconomic conditions.
Ogochukwu Onwaeze
