Group Applauds CBN, Cardoso for Tackling Inflation, Boosting Reserves

• A group has praised the CBN and the governor, Olayemi Cardoso, for boosting Nigeria’s forex reserves and contributing to reduced inflation
• The Centre for Economic Growth and Monetary Reforms (CEGMR) disclosed that CBN policies have renewed investors’ confidence
• CEGMR disclosed in a recent statement that the apex bank’s policies have redirected Nigeria towards economic recovery

The Centre for Economic Growth and Monetary Reforms (CEGMR) has applauded the Central Bank of Nigeria (CBN) for its disciplined monetary policy stance, which it says is beginning to deliver concrete economic results for the country. 

In a statement signed by its Executive Director, Mary Odoma, the group expressed satisfaction with the direction of current policies under the leadership of CBN Governor Olayemi Cardoso.

Group hails CBN for naira’s stability

Odoma noted that the recent slowdown in inflation, recovery in Nigeria’s foreign reserves, and renewed investor confidence were signs that the economy was stabilising after a prolonged period of volatility. 

“We commend the CBN governor for maintaining a steady course, especially through difficult transitions. His consistent messaging and commitment to orthodox monetary policy are now yielding measurable progress,” she said.

According to the latest figures from the National Bureau of Statistics, Nigeria’s inflation rate fell to 23.71 per cent in April 2025, down from 24.23 per cent in March. 

While the decline may appear modest, CEGMR said the reversal of the inflationary trend, particularly in food and core inflation, was a major milestone, given the cost-of-living pressures households have faced over the past year.

“Monetary policy is not magic, but discipline pays off. This turnaround reflects the CBN’s resolve to prioritise stability over short-term political convenience. Cardoso is showing Nigerians and the world that professionalism and patience still matter,” Odoma said.

CEGMR applauds CBN’s role in boosting FX reserves

The CEGMR further pointed to the CBN’s efforts in rebuilding external reserves, which recently surged past $38.9 billion, marking a significant improvement in Nigeria’s macroeconomic fundamentals. 

“This signals restored credibility and helps anchor the naira against external shocks. A few months ago, the narrative was bleak. But today, we are seeing greater confidence in the naira and fewer distortions in the foreign exchange market,” she said.

She attributed the reserve rebound to a combination of FX reforms, tightened monetary policy, and reduced short-term obligations by the CBN. 

“This is a marked departure from past interventions that drained reserves without addressing core structural issues. The new CBN leadership is choosing sustainability over optics,” she added.

Odoma said the Centre believes the apex bank is also succeeding in restoring investor confidence, pointing to international rating agency upgrades and positive GDP forecasts as signs that the financial community is watching Nigeria’s progress closely.

“With GDP projected to grow by over 4 percent this year, the signals are promising. But they must be protected. Policy consistency must be preserved,” the group admonished.

CBN’s policies are boosting investor confidence

The CEGMR stated that much of this momentum was owed to Cardoso’s emphasis on transparency and data-driven decision-making. 

“He is returning central banking to its rightful role as a stabilising force—anchored in research, clear communication, and accountability. This is what had been missing,” she said.

She, however, warned that the current gains must be deepened through coordinated action across government agencies.

She called on fiscal authorities to reinforce monetary efforts by tackling food insecurity, energy supply bottlenecks, and insecurity that affects production. 

“Inflation isn’t only a monetary issue. Structural problems must also be addressed. But at least now we have a monetary policy foundation that makes progress possible.”

While acknowledging the pressures on households and businesses, CEGMR encouraged the CBN not to rush into easing interest rates prematurely. 

“A premature rate cut would undo the credibility that has taken months to build. The Bank must be allowed to consolidate its gains and guide the economy toward lower inflation without risking a relapse.”

CEGMR asks NASS to support CBN

She also urged the National Assembly and other political actors to support the CBN by resisting populist pressures that could undermine its autonomy. 

Odoma concluded by expressing confidence in the capacity of the Central Bank under Cardoso to steer Nigeria through its current challenges and toward long-term stability. 

“The CBN’s performance under Cardoso has restored hope in responsible macroeconomic management. For the first time in years, Nigerians are beginning to see a glimmer of economic order return. That alone is worth applauding.”

Dollar crashes massively in forex markets

Legit.ng previously reported that the Nigerian currency has recorded the highest gain in over 20 days against the US dollar.

The naira beat steep predictions, especially from the African Development Bank (AfDB), to emerge stronger in the foreign exchange markets.

According to data released by the Central Bank of Nigeria (CBN) on Wednesday, June 4, 2025, the naira recorded the highest appreciation in over 20 days.

Source: Legit.ng