CBN Governor Vows Action Against Inflation Challenges in Nigeria
Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN), emphasized the Monetary Policy Committee’s (MPC) dedication to addressing Nigeria’s inflation challenges On Tuesday.
Speaking in an interview with Newsmen, he underscored inflation as a critical threat to the country’s economic stability. Cardoso assured that the MPC would implement necessary measures to combat the rising prices.
Meanwhile, Nigeria has grappled with persistent inflation exacerbated by factors such as exchange rate fluctuations, disruptions in supply chains, and structural issues. These have strained household incomes, diminishing purchasing power and complicating efforts for economic recovery.
“The MPC has been very clear in stating that they see inflation as a major impediment for the future of Nigeria, and they will do everything possible to ensure that they keep inflation in check and bring it down as reasonably as they can,” he said.
He also emphasized the MPC’s reliance on data-driven decisions and its pivotal role in shaping monetary policy.
“Let’s not forget that the MPC comprises an independent-minded group of individuals who are deeply engaged with data.
“So, what I will say is that depending on what data they see at a particular point in time will direct how they see further hikes or not,” he said.
In response to these challenges, the MPC recently raised the monetary policy rate by 150 basis points during its latest session, elevating it from 24.75 percent to 26.25 percent. This marked the seventh-rate hike since January 2023. Nigeria’s inflation rate climbed to 33.95 percent in May, up from 33.69 percent in April as Cardoso stressed the urgency of tackling inflation, describing it as a significant obstacle to Nigeria’s economic prospects.
