The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has declared that Nigerians are regaining confidence in the naira, crediting this development to a combination of fiscal discipline and targeted monetary reforms.
Speaking at a press briefing in Abuja on Tuesday, July 22, 2025, following the conclusion of the 301st Monetary Policy Committee (MPC) meeting, Cardoso highlighted key indicators that suggest the economy is responding positively to recent interventions.
He stated, “The MPC also notes the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports, and significant investments.
“And very importantly, Nigerians are having greater confidence in their own currency”, he added.
He noted further, “The foreign exchange market is working a lot better and more smoothly – the result of which has encouraged inflows into that market”
“Of course, reference is always being made to the fact that Nigeria has moved away from the very difficult situation where there were subsidies,” he added.
He said further, “These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence.”
CBN remains focused on dis-inflationary measures
Cardoso said the CBN remains focused on restoring price stability and reducing inflation, which currently stands at 22.22%.
According to him, the apex bank’s decision to hold the monetary policy rate at 27.5% for the third time in 2025 is to “sustain the momentum of disinflation and consistently contain price pressures.”
What you should know
CBN announced the retention of the Monetary Policy Rate (MPR) at 27.5% at its 301st MPC meeting.
All 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid lingering inflationary pressures and exchange rate volatility.
Other key decisions taken by the MPC include:
- Retaining the Monetary Policy Rate (MPR) at 50%
- Maintaining the asymmetric corridor around the MPR at +500/-100 basis points
- Keeping the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks (DMBs) and 16% for Merchant Banks
- Leaving the Liquidity Ratio unchanged at 30%
In his personal statement made after the 300th MPC meeting published on the CBN website on Friday, a member of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee, Murtala Sagagi, projected that the naira would appreciate to N1,450 per US dollar by the end of 2025.
He added that recent assessments of the Nigerian economy by international rating agencies such as JP Morgan and Fitch Ratings have been positive, reinforcing investor confidence and supporting the outlook for improved currency performance.
