By DAYO ADESULU
ABUJA, NIGERIA — The Central Bank of Nigeria (CBN) has revealed that without its policy interventions, inflation in the country could have surged to 42.81% by December 2024.
CBN Governor Yemi Cardoso made this announcement at the 2025 Monetary Policy Forum in Abuja, where key government officials, economic stakeholders, and private sector players gathered to discuss the nation’s economic outlook.
CBN’s Strategic Interventions to Curb Inflation
Cardoso outlined several bold monetary policies implemented throughout 2024 to stabilize the economy:
- Monetary Policy Rate (MPR) Hike: Increased by 875 basis points to 27.50%
- Cash Reserve Ratio (CRR) Adjustment: Raised by 1,750 basis points to 50%
- Asymmetric Corridor Adjustments: Fine-tuned to control inflationary pressures
“Without these decisive interventions, inflation could have spiraled out of control,” Cardoso stated.
Diaspora Remittances Expected to Hit N31.787 Trillion
The CBN governor also projected a surge in diaspora remittances, with the fourth quarter of 2024 expected to push the total figure to N31.787 trillion.
He attributed this growth to reforms that enhanced financial market efficiency, including:
- Unifying the exchange rate window
- Strengthening FX market transparency
- Facilitating increased remittance inflows via International Money Transfer Operators (IMTOs)
Foreign Exchange Reforms: Key Achievements
The CBN introduced a unified exchange rate system, improving market confidence and boosting FX liquidity. Notably,
- IMTO remittances surged 79.4% in the first three quarters of 2024 to $4.18 billion, compared to $2.33 billion in the same period of 2023.
- Cleared a backlog of $7 billion in FX commitments.
- Lifted restrictions on 41 previously banned items from the official FX market.
Strengthening Nigeria’s Banking Sector for a $1 Trillion Economy
To reinforce financial stability, the CBN announced new minimum capital requirements for banks, effective March 2026. This move aims to:
- Enhance the resilience and competitiveness of Nigeria’s banking sector.
- Support the country’s vision of becoming a $1 trillion economy.
Launch of Women’s Financial Inclusion (WIFI) Initiative
In a bid to close the gender gap in financial access, the CBN introduced the WIFI initiative under the National Financial Inclusion Strategy. This initiative aims to:
- Empower women through financial education.
- Provide digital tools for financial management.
- Enhance access to credit facilities.
FX Market Integrity Strengthened with New Nigeria Foreign Exchange Code
The CBN has also launched the Nigeria Foreign Exchange Code, built on six core principles to promote:
- Integrity
- Fairness
- Transparency
- Efficiency
Looking Ahead: Inflation Targeting in 2025
As Nigeria enters 2025, Cardoso emphasized the need for continued proactive monetary policies to sustain economic recovery.
“Our focus remains on price stability, disinflation, and restoring purchasing power,” he said. He further stressed the importance of collaboration between fiscal and monetary authorities to ensure economic resilience.
Conclusion
The CBN remains committed to strengthening Nigeria’s financial system, ensuring macroeconomic stability, and enhancing investor confidence. With ongoing policy refinements, Nigeria’s economic trajectory looks promising as the nation moves towards a sustainable and prosperous future.
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