Central Bank of Nigeria (CBN) Governor Olayemi Cardoso emphasized that he and his team are not responsible for the current economic challenges in the country.

Dr. Olayemi Michael Cardoso
Dr. Olayemi Michael Cardoso

Speaking at the Monetary Policy Committee (MPC) meeting in Abuja, Cardoso acknowledged the economic issues faced by Nigeria, such as rising inflation, food inflation, forex crisis, and economic hardship.

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He clarified that the CBN is actively working to address these challenges and restore the country’s fiscal and monetary health.

Cardoso highlighted the identification of non-monetary factors driving inflation, including insecurity and infrastructure deficits. He emphasized the role of fiscal policy in addressing these issues and noted that the CBN is part of the solution. Responding to questions about the CBN’s responsibility for the economic challenges, Cardoso stressed the importance of restoring confidence in the business environment.

During the MPC meeting, the CBN raised the Monetary Policy Rate (MPR) by four hundred basis points, increasing it from 18.75 percent to 22.75 percent. This decision is part of efforts to tackle the country’s high inflation rate, currently at 29.90 percent.

Olayemi explained that inflation is driven by factors such as exchange rate pass-through, the rising cost of energy, high fiscal deficit, and security challenges in major food-producing areas. Projections indicate that inflation will remain on an upward trajectory before descending.

Olayemi, who took over as CBN governor about three months after the suspension of Godwin Emefiele, highlighted the determination of the CBN to navigate through the challenges and work towards a better economic situation.

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