No going back on fight against inflation, says Cardoso

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says there is no going back on the fight against inflation.

Speaking on Tuesday at a press briefing after the 298th monetary policy committee (MPC) meeting in Abuja, Cardoso said the bank would continue to deploy all available tools to tame inflation.

“Let me first say that the central bank is resolute and committed to continuing to fight the war against inflation. There is no going back on that,” Cardoso said.

“We are going to deploy everything in our arsenal to ensure that we are able to tame it, and of course, this entails the return to orthodox monetary policies.

“So, I think it is important to state that upfront, there’s no going back on that.”

 Cardoso said the effects of monetary policies take time to yield results, “with a lag period of six to nine months, or even up to a year, depending on the measures implemented”.

The CBN governor projected that the impact of recent policy tightening would become more evident by the first quarter of 2025.

“We expect to see greater results in the first quarter of 2025, and you can do the math from the time we started tightening so we expect to see this in the first quarter of 2025,” he said.

‘CBN WORKING WITH AGENCIES TO ADDRESS CHALLENGES AFFECTING INFLATION’

Cardoso also said the apex bank is working with relevant agencies to address structural challenges affecting inflation, such as supply disruptions and infrastructure deficits.

He added that the CBN is also working to eliminate distortions in the foreign exchange (FX) market to ensure it reflects the true value of the naira.

“We are doing what we can within the limits of markets, and in particular, the foreign exchange market and by that, I refer to the fact that we appreciate that many times, some distortionary elements come into a market, and that is why we as regulators, that’s what we are there for,” the CBN governor said.

“We are ensuring that we are on top of the game and that the foreign exchange market operates at its most optimal manner, and so it will reflect the true value of the currency and of course, you have price discovery.”

Cardoso stressed that Nigeria is on the right path and must stay the course as far as inflation and FX management is concerned — noting that other countries face similar issues.

He expressed optimism that the sacrifices made by Nigerians amid monetary tightening would yield significant benefits in the future, stating the need for patience and commitment to the country’s economic reforms.