The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, is receiving commendation for his strategic policies aimed at tackling inflation and boosting Nigeria’s foreign reserves. The Centre for Economic Growth and Monetary Reforms (CEGMR) has lauded these efforts, asserting that they are beginning to yield tangible economic benefits for the nation.
Economic Stabilization and Investor Confidence
In a statement released by CEGMR’s Executive Director, Dr. Mary Odoma, the organization expressed satisfaction with the current policy direction under Cardoso’s leadership. Odoma highlighted that the recent deceleration in inflation, the resurgence of Nigeria’s foreign reserves, and renewed investor confidence indicate that the economy is stabilizing after a prolonged period of instability.
“We commend the CBN governor for maintaining a steady course, especially through difficult transitions. His consistent messaging and commitment to orthodox monetary policy are now yielding measurable progress,” Dr. Odoma stated. She attributed the increase in reserves to foreign exchange reforms, reduced CBN liabilities, and a focus on long-term sustainability.
Recent data from the National Bureau of Statistics (NBS) shows that Nigeria’s inflation rate decreased to 23.71 percent in April 2025, down from 24.23 percent in March. While the decline may seem modest, CEGMR emphasized that reversing the inflationary trend, particularly in food and core inflation, is a significant achievement, considering the cost-of-living pressures households have faced over the past year.
Rebuilding External Reserves
CEGMR also highlighted the CBN’s successful efforts in rebuilding external reserves, which have surpassed $38.9 billion recently. This improvement signals restored credibility and helps protect the naira against external shocks.
“This signals restored credibility and helps anchor the naira against external shocks. A few months ago, the narrative was bleak. But today, we see greater confidence in the naira and fewer distortions in the foreign exchange market,” Odoma noted.
The World Bank projects Nigeria’s inflation rate to average 22.1% in 2025, assuming the CBN maintains its tight monetary stance. The CBN has implemented measures to shore up foreign exchange reserves, which are now yielding positive results, according to Cardoso.
Future Outlook and Recommendations
Looking ahead, the World Bank suggests that Nigeria’s macroeconomic situation is improving due to the commitment to sustain reforms. However, they caution that the “war is not won yet” due to ongoing challenges like inflation. The organization recommends that the CBN continue its tight monetary policy to anchor stability.
Odoma warned against premature interest rate cuts, stating that they could undermine months of credibility-building. She called on political leaders to support the CBN’s autonomy and maintain the momentum of reform. “The CBN’s performance under Cardoso has restored hope in responsible macroeconomic management,” she concluded.
