adsOlayemi Cardoso, governor, Central Bank of Nigeria (CBN), has said that the monetary authority will not revert to interventionist policy tools, arguing that ongoing reforms are beginning to restore credibility, improve price stability and strengthen confidence in Africa’s most populous economy.
Cardoso, speaking at the opening session of a Monetary Policy Committee (MPC) workshop in Abuja, said the central bank has shifted decisively back to orthodox monetary policy after what he described as a period of weakened institutional autonomy and policy distortions.
“We are firmly committed to orthodox monetary policy, transparency and evidence-based decision-making,” Cardoso said. “These reforms are critical to restoring confidence in the Nigerian economy and strengthening macroeconomic stability.”
He said the central bank had inherited a system in which monetary policy credibility had been eroded, with blurred boundaries between fiscal and monetary functions, opaque foreign exchange management and extensive reliance on unconventional tools that weakened policy transmission.
“At the inception of this administration, we faced weakened institutional autonomy, reduced policy credibility and reliance on unorthodox monetary tools,” he said. “These challenges limited the effectiveness of policy interventions and undermined transparency.”
