Inflation Would Have Hit 42% Without CBN Intervention—Cardoso 

Speaking at the 2025 Monetary Policy Forum with the theme Managing the Disinflation Process in Abuja, he said without the decisive policy interventions undertaken by the bank to reign in rising prices, inflation could have reached 42.81 per cent by December 2024.

Nigeria’s inflation rate rose for the fourth straight month to 34.8 per cent in December 2024, up from 34.6 per cent in the prior month.

Mr Cardoso also noted that the liquidity injections associated with unorthodox monetary policies, particularly since the COVID-19 pandemic, had created a significant overhang.

He added that while these measures were intended to cushion immediate shocks, they did not translate into commensurate productivity growth, fueling inflationary pressures, and heightened foreign exchange volatility.

The apex bank chief also said excess Naira liquidity in the system had amplified demand-driven inflation, further exacerbated by supply-side constraints stemming from structural deficits.

The CBN governor also said recent reforms in the nation’s Foreign Exchange (FX) segment have continued to attract foreign investors into the economy, vowing that the monetary authority will do everything possible to ensure that current inflows continue.

Mr Cardoso noted that cautious optimism was emerging globally around potential improvements in capital flows to emerging markets, as advanced economies transition toward monetary easing.

He noted that Nigeria’s ability to sustain these inflows will depend on investor confidence in domestic reforms, particularly those ensuring macroeconomic stability and delivering positive real returns on investment.

“However, we must remain committed to bold, coordinated policy measures to consolidate our progress” he said, adding that for inflation to be defeated, it required serious collaboration between the fiscal and monetary side.

The CBN governor said these dynamics underscored the importance of a disciplined and coordinated approach to monetary policy to restore stability.