The Central Bank of Nigeria has said that without its policy interventions, inflation could have surged to 42.81 per cent by December 2024.
According to The PUNCH, it also projected that diaspora remittances would rise to ₦31.79 trillion when fourth-quarter figures for 2024 are released.
Going forward, the apex bank has pledged to stick to orthodox monetary policies to tame inflation in 2025.
The CBN Governor, Olayemi Cardoso, made these disclosures in Abuja on Thursday at the 2025 Monetary Policy Forum, which brought together ministers, heads of economic agencies, and private sector players.
He stated that counterfactual estimates suggest that without decisive policy interventions, inflation could have reached 42.81 per cent by December 2024.
He further noted that throughout 2024, the CBN implemented bold policy measures across six Monetary Policy Committee meetings, including raising the Monetary Policy Rate by 875 basis points to 27.50 per cent, increasing the Cash Reserve Ratio for Other Depository Corporations by 1,750 basis points to 50.00 per cent, and adjusting the asymmetric corridor around the MPR.
Cardoso said, “Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024.”
He added, “Throughout 2024, the Bank implemented several bold policy measures across six MPC meetings, including raising the Monetary Policy Rate by a cumulative 875 basis points to 27.50 per cent, increasing the Cash Reserve Ratio of Other Depository Corporations by 1,750 basis points to 50.00 per cent, and adjusting the asymmetric corridor around the MPR.”
Cardoso highlighted that the CBN implemented critical foreign exchange reforms to enhance market efficiency.
The unification of multiple exchange rate windows contributed to a 79.4 per cent rise in remittances via International Money Transfer Operators to $4.18 billion in the first three quarters of 2024, up from $2.33 billion in the same period in 2023.
Other major FX-related interventions included clearing a $7 billion FX backlog, which restored market confidence and improved FX liquidity, lifting restrictions on 41 items previously banned from access to the official FX market since 2015, and introducing new minimum capital requirements for banks, effective March 2026, to enhance resilience and global competitiveness in the sector.
The apex bank also launched the WIFI initiative under the National Financial Inclusion Strategy, aimed at bridging the gender gap in financial access by empowering women with financial services, education, and digital tools.
Also, the Nigeria Foreign Exchange Code was introduced to ensure integrity, transparency, and efficiency in the FX market.
Cardoso described the code as a binding commitment by the financial sector to rebuild trust and boost confidence.
