Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced that Nigerians are demonstrating renewed faith in their national currency, attributing this positive shift to disciplined fiscal policies and strategic monetary interventions.
During a media briefing in Abuja on Tuesday, July 22, 2025, after the 301st Monetary Policy Committee meeting concluded, Cardoso outlined several encouraging economic signals that indicate successful policy implementation.
He stated, “The MPC also notes the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports, and significant investments. And very importantly, Nigerians are having greater confidence in their own currency.”
The governor emphasized improvements in forex market operations, noting, “The foreign exchange market is working a lot better and more smoothly – the result of which has encouraged inflows into that market.”
Cardoso referenced Nigeria’s transition from subsidy-dependent policies, stating, “Of course, reference is always being made to the fact that Nigeria has moved away from the very difficult situation where there were subsidies.”
He acknowledged the challenging nature of recent reforms while highlighting their positive outcomes: “These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence.”
The governor emphasised the central bank’s commitment to achieving price stability and reducing the current inflation rate of 22.22%.
Cardoso explained that maintaining the monetary policy rate at 27.5% for the third consecutive time in 2025 aims to “sustain the momentum of disinflation and consistently contain price pressures.”
The CBN maintained the Monetary Policy Rate at 27.5% during the 301st MPC meeting, with all twelve committee members voting in favour of this decision, demonstrating consensus among policymakers despite ongoing inflationary challenges and currency fluctuations.
Additional policy measures include:
Keeping the Monetary Policy Rate at 27.5%
Preserving the asymmetric corridor at +500/-100 basis points around the MPR
Maintaining the Cash Reserve Ratio at 45% for commercial banks and 10% for merchant banks
Sustaining the Liquidity Ratio at 30%
MPC member Murtala Sagagi previously projected the naira could strengthen to N1,450 per US dollar by year-end 2025, citing favourable assessments from international rating agencies like JP Morgan and Fitch Ratings as factors supporting improved currency prospects.
