What do you believe is the single most important factor driving up the cost of living in Nigeria?

Speaking during an address at the Harvard Club of Nigeria over the weekend, Cardoso emphasized that the rate hike, while tough on borrowers, is crucial for the country’s economic stability.

“Our decision to raise the Monetary Policy Rate to 27.25 per cent was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these,” Cardoso said.

He noted that the CBN’s focus on core objectives, such as containing inflation, restoring credibility, and building public trust in the financial system, is critical to any meaningful recovery.

Cardoso’s remarks came as he reflected on his tenure as the head of the CBN, marking one year in office. He pointed out that trust is at the core of central banking, and without it, the effectiveness of the bank’s policies would diminish.

The CBN Governor also said the introduction of the Electronic Foreign Exchange Matching System is a key initiative to enhance transparency and restore market confidence.

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