CBN reforms saves Nigeria from severe hardship after global shocks
The reforms implemented by the Central Bank of Nigeria have helped cushion the impact of global economic shocks on Nigerians, preventing more severe hardship despite ongoing external pressures, the apex bank has said.
CBN Governor Olayemi Cardoso disclosed this at the final briefing of the bank during the just-concluded Spring Meetings of the World Bank/International Monetary Fund in Washington DC.
“The decisions of the MPC (Monetary Policy Committee), as we consistently emphasise, are data-driven. They are not based on emotion but on careful analysis of available information, and we respond accordingly. I am pleased that this cautious approach has proven justified by subsequent developments.
“I would also add that if we had not taken the steps we did at the time—and if the reforms had not been implemented when they were—the outcome for the country could have been far more difficult and painful,” Cardoso stated, while responding to a question on the March uptick in inflation.
Cardoso admitted that the recent National Bureau of Statistics report “showed an uptick in inflation, which, quite frankly, should not be too surprising given the global disruptions taking place at this time. Much of this increase can be attributed to global shocks.”
He noted that it was important to remind ourselves that, up to this point, the country had experienced consistent deceleration in inflation. “We had also begun the process of reducing rates, although we remained cautious. At the time, we were careful to avoid easing too early, as doing so could expose the economy to exactly the kind of shocks we are now witnessing—and that is precisely what has happened.
