Cardoso Reaffirms Commitment to Orthodox Monetary Policy, Transparency

Governor of the Central Bank of Nigeria, Olayemi Cardoso, has reaffirmed the apex bank’s commitment to orthodox monetary policy, transparency and evidence-based decision-making, warning against a return to interventionist programmes.

Speaking at the opening of the Monetary Policy Committee workshop in Abuja, Cardoso said the reforms introduced by the current management were necessary to restore confidence in Nigeria’s economy and strengthen macroeconomic stability.

“The ongoing reforms are critical to restoring confidence in the Nigerian economy and strengthening macroeconomic stability,” he stated.

According to the CBN governor, the bank inherited weakened institutional autonomy, reduced policy credibility and an overreliance on unorthodox monetary tools when the current administration assumed office.

He explained that the situation blurred the distinction between fiscal and monetary responsibilities, weakened transparency and reduced the effectiveness of monetary interventions.

Cardoso further noted that the foreign exchange market had previously been opaque and inefficient, while poor fiscal and monetary coordination worsened economic outcomes.

According to him, these structural challenges contributed to rising inflation, exchange-rate instability and declining investor confidence.

However, he said the apex bank’s ongoing reforms were beginning to reverse the trend.

“We have restored a more orthodox approach to monetary policy under the current MPC framework, with renewed emphasis on conventional instruments and the policy rate as the primary signalling tool,” Cardoso said.

He added that improvements in liquidity management, policy communication and forward guidance had enhanced transparency and helped stabilise expectations among businesses, households and investors.

The CBN governor acknowledged that inflation remained high and required close monitoring, but noted that it had started moderating, while exchange-rate stability had improved.

Cardoso also cautioned against renewed calls for interventionist policies, warning that such programmes previously distorted the central bank’s balance sheet and weakened policy credibility.

“The institution’s renewed credibility over the past two and a half years has largely stemmed from disciplined reliance on conventional policy tools,” he added.

He stressed that the bank’s decision-making process was increasingly guided by data-driven analysis, structured deliberation and predictable communication practices.

Cardoso reaffirmed the apex bank’s commitment to transparency, institutional strengthening and evidence-based policymaking as essential pillars for achieving sustainable economic stability in Nigeria.