The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, on Tuesday, said the Monetary Policy Committee (MPC) remains committed to addressing Nigeria’s inflation challenges.
In an interview with Bloomberg TV, he stressed that inflation is a significant threat to the country’s economic stability and assured that the MPC would take all necessary measures to curb rising prices.
Nigeria has struggled with persistent inflation due to factors like exchange rate volatility, supply chain disruptions, and other structural concerns. This has put pressure on household incomes and reduced purchasing power, complicating economic recovery efforts.
To combat the inflationary and exchange rate pressures affecting the economy, the MPC increased the monetary policy rate by 150 basis points at its last meeting, raising it from 24.75 per cent to 26.25 per cent. That marked the seventh rate hike since January 2023.
The country’s inflation rate rose to 33.95 per cent in May compared to 33.69 per cent in April.
Mr Cardoso highlighted the urgency of dealing with inflation, calling it a “major impediment” to Nigeria’s economic future.
“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 emphasised 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.
Naira volatility
Mr Cardoso also said the CBN is “relatively pleased” with its progress in stabilising the naira and believes the excessive volatility may be a thing of the past.
“I believe that we have seen the worst in terms of volatility.
“We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that can be accomplished using certain tools.
“We’re relatively pleased with where we are,” he said.
He also emphasised that the CBN must do more, stating it is an ongoing process.
Since early June, the naira has maintained a range of between N1,476 and N1,490 against the dollar in the official market
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