The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has expressed optimism about the country’s economic trajectory, stating that inflation is on a downward trend and key economic indices are showing positive signs.
Speaking at the latest Monetary Policy Committee (MPC) meeting on Thursday, Cardoso noted that recent macroeconomic developments are expected to have a positive impact on price stability in the near to medium term.
“At this meeting, the Monetary Policy Committee noted with satisfaction, recent macroeconomic developments which are expected to positively impact the price dynamics in the near to medium term. These include the stability in the foreign exchange market with the resultant appreciation of the exchange rate and the moderation in the price of PMS,” Cardoso stated.
Caution Amid Inflationary Pressures
Despite the positive outlook, the CBN governor acknowledged that inflationary pressures remain, particularly due to rising food prices. The MPC took note of the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS), which adjusted the weight of various items to better reflect current consumption patterns.
“Members, however, were not oblivious of the persisting inflationary pressures, driven largely by food prices. The Committee noted the recent rebasing of the commodity price index (CPI) by the National Bureau of Statistics (NBS), which reviewed the weights of items to reflect current consumption,” he added.
While inflation has been moderating, Cardoso cautioned that this does not mean the country has reached a low inflation level.
“Nobody should infer that inflation has fallen to that level,” he said, urging stakeholders to remain patient as economic policies continue to take effect.
The National Bureau of Statistics (NBS) adjusted the methodology for calculating inflation, leading to a sharp drop from 34.80% recorded in December 2024 under the previous system.
What you should know
Recently, the CBN has introduced several measures to stabilize the foreign exchange market and curb inflation in the country.
- The apex bank has, in January 2024, introduced the FX Code for market operators.
- However, analysts argue that structural issues—such as supply chain disruptions, insecurity affecting food production, and fiscal pressures—still pose challenges to achieving sustainable price stability.
According to the latest report by the NBS, urban inflation was 26.09%, while rural inflation stood at 22.15%, reflecting changes in the method used to measure price movements in the economy.
