Cardoso Reveals CBN’s Strategy Behind Preventing 42.81% Inflation in 2024

Discover How CBN Policies Averted a 42.81% Inflation Rate, According to Cardoso

At the 2025 Monetary Policy Forum held in Abuja, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso stated that without the CBN’s policy interventions, inflation could have escalated to 42.81% by December 2024.

Throughout 2024, the CBN implemented several measures to curb inflation, including:

• Raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50%.
• Increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations by 1,750 basis points to 50%.
• Adjusting the asymmetric corridor around the MPR.

These actions were part of a disciplined and coordinated approach to restore stability in the financial market and support the national economy.

Cardoso also highlighted that the CBN undertook critical reforms to strengthen the financial system and ensure macroeconomic stability. One significant reform was the unification of the exchange rate window to enhance efficiency in the foreign exchange market. This move led to a 79.4% increase in remittances through International Money Transfer Operators, totaling $4.18 billion in the first three quarters of 2024, compared to $2.33 billion in the same period of 2023.

Looking ahead, the CBN plans to continue employing orthodox monetary policy measures to address inflationary pressures throughout 2025. The bank also aims to strengthen investor confidence and sustain recent gains, including stability in the foreign exchange market, by creating an enabling environment for inclusive economic development.