Central Bank of Nigeria Governor Reaffirms Commitment to Tackling Inflation
Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has reaffirmed the bank’s unwavering commitment to combating inflation.
Speaking at a press briefing following the 298th Monetary Policy Committee (MPC) meeting in Abuja, Cardoso emphasized that the CBN would continue to deploy all available tools to curb inflation, including adhering to orthodox monetary policies.
He stated that there would be no reversal of the bank’s efforts to fight inflation and that the central bank was resolute in its approach as he acknowledged that the effects of monetary policy interventions often take time to materialize, with results typically becoming visible after six to nine months, or even up to a year, depending on the specific measures taken.
Despite the challenges, Cardoso expressed confidence that Nigeria is on the right path in managing inflation and foreign exchange issues. He called for continued patience and dedication to the country’s economic reforms, noting that while the country faces significant challenges, similar issues are being faced by other nations as well. The Governor encouraged Nigerians to stay committed to these reforms, stressing that the sacrifices made during the monetary tightening would eventually lead to long-term economic benefits.
The CBN Governor also highlighted that the central bank is collaborating with other relevant agencies to address structural issues contributing to inflation, such as supply chain disruptions and infrastructure deficits. Additionally, the bank is working to eliminate distortions in the foreign exchange (FX) market, aiming to ensure that the naira reflects its true value. Cardoso assured that the CBN is actively managing the FX market to minimize distortions and optimize its functioning for price discovery.