CBN Governor Vows to Tackle Inflation and Strengthen Naira

Olayemi Cardoso, the recently appointed governor of Nigeria’s central bank, claims that an increase in the money supply is to blame for the rise in inflation and that the new CBN team must abandon the policies of Godwin Emefiele and concentrate only on monetary policies in order to increase the value of the currency.

Cardoso emphasised concerns including poor corporate governance, a lack of institutional autonomy, the inconsistency of conventional policies, and problems with foreign currencies.

He emphasised the CBN’s principal duty to combat inflation and maintain price stability, as well as the necessity of unifying foreign exchange and aligning interest rates for economic growth.

Inflation will be tackled according to its root cause, whether it is in food or energy, and the CBN will ramp up production and address the challenges faced in those sectors. Cardoso acknowledged that the money supply is responsible for 50% of the inflation rate and assured the Senate that the CBN will have a zero-tolerance policy towards abuse of processes and work closely with the National Assembly to ensure compliance.

Stabilizing the naira is crucial for settling Nigeria’s outstanding debts and ensuring the country generates revenue. Deputy Governor Philip Ikeazor emphasized the importance of monetary policies, strengthening governance, and supporting physical measures taken by the government.

In order to fight poverty and preserve the free flow of the naira, he argued that it is important to look outside the box and promote exportation. Godswill Akpabio, the president of the Senate, urged Nigerians to engage in productive discussion and work together to combat the country’s rising poverty.