CBN's Olayemi Cardoso Implements Key Monetary Reforms

Olayemi Cardoso took charge of the Central Bank of Nigeria on September 22, 2023, amid significant economic challenges, including a headline inflation rate of 26.72%, a Monetary Policy Rate (MPR) of 18.75%, and gross external reserves of approximately $33.2 billion. The CBN faced over $7 billion in unsettled foreign exchange obligations and limited liquidity affecting businesses' access to foreign currency.

Cardoso's strategy involved a return to conventional central banking, scaling back development financing, tightening monetary conditions, and raising capital requirements for banks. By October 2026, reserves had risen above $55 billion, and the foreign exchange market had become more transparent.

However, high interest rates persisted, and the naira remained weaker than in 2023. Cardoso emphasized the importance of price stability in monetary policy, moving away from the previous administration's extensive sector financing.

The Monetary Policy Committee (MPC) raised the MPR multiple times, reaching 27.50% in November 2024, before beginning to reduce it in September 2025.