Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has credited the apex bank’s Monetary Policy Department (MPD) with playing a pivotal role in shaping major policy milestones recorded over the years.
Cardoso, represented by the Deputy Governor in charge of Economic Policy, Dr. Mohammed Abdullahi spoke yesterday in Abuja at an event marking the MPD’s 20th Anniversary Colloquium, themed “Monetary Policy in Nigeria: Past, Present and Future.”
He noted that the department has consistently provided technical backbone to key CBN committees, including the Monetary Policy Committee (MPC) and the Monetary Policy Technical Committee, thereby strengthening policy coherence and decision-making.
“The department’s work has underpinned several landmark achievements, including the introduction of the Monetary Policy Rate (MPR), which replaced the minimum rediscount rate in 2006 and improved clarity and coordination of monetary policy,” he said.
Cardoso also highlighted the MPD’s role in adopting the Interest Rate Corridor framework, which established guidance around the MPR to better steer short-term interest rates and enhance liquidity management.
According to him, the department has equally advanced evidence-based policy analysis and improved the bank’s communication strategy, contributing to greater transparency in monetary operations.
He said Nigeria’s economy had undergone significant transformation over the past two years, driven by policy reforms that have helped restore confidence and set the stage for long-term macroeconomic stability.
“As a result, inflation has moderated to 16 per cent as of October, down from a peak of 34.6 per cent in November 2024 — the lowest in three years and the seventh consecutive month of disinflation. Core inflation is also easing, showing that tight monetary policy is taking effect,” he said.
Cardoso added that the naira had continued to stabilise as foreign exchange pressures eased.
Director of the MPD, Dr. Victor Oboh, described the department’s 20-year journey as one defined by intellectual discipline, strategic foresight and unwavering commitment to the CBN’s core mandate.
He thanked the CBN Governor for his guidance and support, noting that the department’s work had shaped Nigeria’s transition from direct controls to a more market-based monetary policy regime.
Oboh said the MPD’s resilience had been evident during global and domestic shocks, including the financial crisis, commodity price downturns and the COVID-19 pandemic.
