Amid Nigeria’s high inflation rate, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has stated that the nation’s monetary policy is working.
Speaking during the 2024 annual bankers dinner in Lagos organised by the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso said the country’s monetary policy will change Nigeria’s economic situation.
His remarks come following reports of Nigeria’s inflation rising to 33.88 per cent in October from the 32.70 per cent recorded in September, according to the National Bureau of Statistics (NBS) report.
While expressing concern, Cardoso added that 2025 would witness a downtrend.
“I fully recognise the challenges that higher interest rates impose on businesses and families. However, these measures are not intended to be permanent.
“We are closely monitoring the data and as inflation shows sustained signs of improvement, something we expect in the near future, we will adjust rates accordingly.
“Our tight monetary policy stance has altered the previous dire trajectory and we expect a downward trend in 2025.
“Inflation remains unacceptably high, but the signs are encouraging, particularly given that the full effects of monetary policy typically take six to nine months to impact the consumer sector,” he stated.
Cardoso further clarified that the current exchange rate of dollar to naira does not reflect the true market value of the country.
“It is also vital to address the disinformation circulating about a supposed demand-supply gap in the FX market which is fueling unnecessary panic.
“The current US dollar exchange rate reflects the price that the most desperate buyers are willing to pay and this, in my view, does not represent the true market value of Nigeria.”