The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has reaffirmed the apex bank’s commitment to orthodox monetary policies, transparency and data-driven decision-making, warning against a return to interventionist programmes that previously weakened policy credibility and distorted the financial system.
Speaking at the opening of the Monetary Policy Committee workshop in Abuja, Cardoso said the ongoing reforms introduced by the current management were aimed at restoring confidence in the Nigerian economy and strengthening macroeconomic stability.
According to him, the bank inherited a fragile system marked by weakened institutional autonomy, reduced policy credibility and heavy dependence on unorthodox monetary tools.
“The challenges blurred the distinction between fiscal and monetary responsibilities, reduced transparency and limited the effectiveness of policy interventions,” he said.
Cardoso noted that the foreign exchange market was previously opaque and inefficient, while poor coordination between fiscal and monetary authorities further worsened economic conditions.
He stated that the structural distortions contributed to rising inflation, exchange-rate volatility and declining investor confidence, but maintained that recent reforms were beginning to reverse the trend.
“We have restored a more orthodox approach to monetary policy under the current MPC framework, with renewed emphasis on conventional instruments and the policy rate as the primary signalling tool,” he said.
The CBN governor added that improvements in liquidity management, forward guidance and policy communication had enhanced transparency and helped stabilise expectations among households, businesses and investors.
While acknowledging that inflation remains elevated, Cardoso said there were early signs of moderation, alongside improved exchange-rate stability.
He also cautioned against renewed calls for interventionist policies, stressing that such programmes had previously distorted the apex bank’s balance sheet.
“The institution’s renewed credibility over the past two and a half years has largely stemmed from disciplined reliance on conventional policy tools,” he stated.
Cardoso further disclosed that the bank’s decision-making process is now increasingly driven by data analysis and structured deliberation, while communication practices have become more consistent and predictable.
He reaffirmed the commitment of the Central Bank to transparency, evidence-based policymaking and institutional strengthening as part of efforts to achieve sustainable macroeconomic stability in Nigeria.
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