Nigeria Central Bank of Nigeria (CBN),Olayemi Cardoso, has suggested that the apex bank will maintain high interest rates until inflation eases, employing conventional measures.

    Inflation in Nigeria remains persistently high at 33.2 percent, marking the highest level in three decades, with food inflation even higher at 40 percent.

    In an interview with the Financial Times, Cardoso stated that the Monetary Policy Committee (MPC), which he chairs, is committed to taking necessary actions to curb the surging inflation.

    “There are clear indications that the MPC will take all necessary steps. They will continue implementing measures essential for reducing inflation,” Cardoso remarked ahead of the committee’s scheduled meeting on May 20 and 21.

    Nigeria: Central Bank

    Cardoso’s approach sharply contrasts with that of his predecessor, Godwin Emefiele, who presided over an inflation crisis in Nigeria by frequently resorting to money printing to finance government deficits exceeding the 5 percent limit mandated by law.

    He remarked, “Let’s acknowledge it: for a considerable period, the CBN didn’t adopt orthodox monetary policies. We’re returning to orthodox methods, which will guide us in the right direction. The central bank has been reoriented to prioritize price and monetary stability.”

    It’s worth noting that the monetary policy rate saw significant hikes of 400 and 200 basis points in February and March, respectively, elevating the key lending rate to 24.75 percent.

    Regarding the fluctuating value of the naira against the US dollar, Cardoso noted a stabilization in the situation. “Previously, investors tended to react to currency fluctuations by seeking alternative options. However, there’s been a significant shift. They’re becoming more comfortable with the market,” he observed.

    While Cardoso’s policies have generally been well-received by markets, they haven’t garnered universal support domestically. Some businesses have voiced concerns about the high cost of credit, even as foreign portfolio investors have slowly returned to the country.

    Analysts have responded with a mix of opinions

    Razia Khan, Chief Economist at Standard Chartered Bank, expressed approval, stating, “The return to orthodoxy has garnered significant support from investors. While Nigeria isn’t pursuing an IMF program, it’s adopting policies aligned with IMF recommendations.”

    Dumebi Oluwole, Senior Economist at data firm Stears, acknowledged the central bank’s efforts, saying, “The central bank is addressing the right issues. However, Nigeria’s inflation is deeply rooted in structural factors. Challenges like insecurity are hampering food production, driving up food inflation.”

    David Adonri, Vice Chairman of Highcap Securities, raised concerns about high-interest rates, cautioning that they could exacerbate production and consumer credit costs. He emphasized the need for coordinated supply-side measures alongside monetary and fiscal policies to curb inflation and lower interest rates.


    Cardoso expressed optimism that high rates would not persist indefinitely, fearing they might discourage investment and production. He defended rate hikes as necessary, citing their impact on stabilizing the foreign exchange market.

    Acknowledging higher-than-anticipated inflation, Cardoso attributed it to “distortions,” primarily driven by elevated food prices. Victor Chiazor, Head of Research at FSL Securities, noted that while the high-interest rate stance was expected given the inflation level, the key question remains whether the central bank will persist with tightening or adjust its policy stance based on inflation trends. He cautioned against a dovish approach, considering negative real returns and persistent inflation.

    How much is 1 dollar to naira cbn rate?

    Nair falls against Dollar

    1 US Dollar =1,407.56 Nigerian Naira1 USD = 1,407.56 NGN1 NGN = 0.00071045 USD

    Currency Exchange Reminder: Rates Fluctuate!

    While the Central Bank of Nigeria (CBN) provides a benchmark exchange rate, keep in mind that actual exchange rates can change throughout the day.

    Here’s how to find the most up-to-date rate for your currency exchange:

    • Check the CBN website for updates:
    • Use a currency converter app or website.
    • Contact a bank or licensed money changer for their current rates.

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