How CBN Saved Nigeria from 42.81% Inflation Disaster – Cardoso Reveals Shocking Figures"

By Achimi Muktar

Without the Central Bank of Nigeria’s (CBN) aggressive policy interventions, inflation in Nigeria would have skyrocketed to a staggering 42.81% by December 2024, CBN Governor Olayemi Cardoso has revealed.

Speaking at the 2025 Monetary Policy Forum in Abuja, which gathered top government officials, economic experts, and private sector leaders, Cardoso disclosed that the bank’s bold monetary policies played a crucial role in stabilizing the economy.

According to Cardoso, throughout 2024, the CBN implemented a series of aggressive monetary policies to curb rising prices and restore confidence in the financial system.

“Without these decisive interventions, inflation could have surged to 42.81% by December 2024,” he stated.

Key measures implemented by the CBN included:

✔️ Raising the Monetary Policy Rate (MPR) by 875 basis points to 27.50%

✔️ Increasing the Cash Reserve Ratio (CRR) for banks by 1,750 basis points to 50.00%

✔️ Adjusting the asymmetric corridor around the MPR to tighten monetary policy

Cardoso also highlighted major foreign exchange reforms that improved market efficiency, helped clear a $7 billion FX backlog, and boosted remittances from Nigerians abroad by 79.4%, reaching $4.18 billion in just three quarters of 2024.

Despite these efforts, inflation remains a serious concern, and Cardoso emphasized the need for coordinated fiscal and monetary policies to sustain price stability.

“Managing disinflation amid persistent shocks requires strong collaboration between fiscal and monetary authorities,” he warned.

The CBN’s plan for 2025 includes:

📌 A shift to an inflation-targeting framework to restore purchasing power

📌 New minimum capital requirements for banks (effective March 2026) to strengthen financial stability

📌 Further FX market reforms to maintain investor confidence and attract capital inflows

In a bid to restore trust and credibility, Cardoso reiterated the CBN’s transition away from unorthodox policies.

Encouragingly, he noted that FX liquidity is improving, and the naira is gradually stabilizing, creating a more predictable environment for businesses, exports, and essential imports.

With global economies expected to ease monetary policies, Nigeria could benefit from increased foreign capital inflows, but only if investor confidence remains strong.