The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has labeled the recent decision to raise the Monetary Policy Rate (MPR) to 27.25% as a bold and necessary step in the fight against inflation.
Speaking at a gathering of the Harvard Club of Nigeria in Lagos, Cardoso acknowledged that while higher interest rates may be painful for borrowers, they are essential for curbing excess money in circulation and controlling rising inflation.
During his address on “Leadership in Challenging Times: Restoring Credibility, Building Trust and Containing Inflation,” Cardoso emphasized the importance of making difficult choices for the sake of long-term economic stability over short-term comfort.
He stated, “Leadership is about making hard choices to secure long-term stability in moments like these.”
In addition to the MPR increase, Cardoso discussed the CBN’s implementation of the Electronic Foreign Exchange Matching System (EFEMS), highlighting its role in enhancing transparency and ensuring more accurate oversight of foreign exchange transactions.
He stressed the importance of trust in central banking, saying, “Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes.”
The CBN’s recent initiatives are part of a broader strategy to restore confidence in the financial system and stabilize the economy amid ongoing challenges.
As the central bank navigates these turbulent times, Cardoso’s remarks underscore the critical balance between immediate economic pressures and the need for sustainable growth.
