Cardoso Addresses Prolonged High Inflation Concerns

Targeting Lower Inflation: CBN’s Strategic Goals

Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) has announced the bank’s objective to reduce the nation’s inflation rate to single digits over the medium to long term. Speaking at a press conference in Abuja following the 299th Monetary Policy Committee (MPC) meeting, Cardoso emphasized that the current inflation rate of 24.48% has remained elevated for an extended period and requires decisive action.

The recent adjustment in the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS) has recalibrated the inflation rate to 24.48% year-on-year for January 2025, down from 34.80% in December 2024. This rebasing reflects updated consumption patterns and aims to provide a more accurate representation of the country’s economic conditions.

To achieve the targeted single-digit inflation, Cardoso highlighted the necessity for enhanced coordination between monetary and fiscal authorities. He pointed to the recent Monetary Policy Forum, which successfully convened both fiscal and monetary policymakers, as a positive step toward this collaborative effort.

In line with these efforts, the CBN has opted to maintain the benchmark interest rate at 27.50%, following six consecutive increases in the previous year. This decision is based on observed stability in the foreign exchange market and a gradual decline in inflationary pressures. However, Cardoso cautioned that food prices remain a potential risk to inflation and will be closely monitored.

These measures are part of the CBN’s broader strategy to foster economic stability and growth, aiming to create a more favorable environment for investment and development in Nigeria.