The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said that Nigerians are showing renewed confidence in the naira, attributing the trend to disciplined fiscal strategies and key monetary reforms.
Speaking in Abuja on Tuesday, July 22, 2025, during a media briefing held after the 301st Monetary Policy Committee (MPC) meeting, Cardoso highlighted a series of positive economic indicators reflecting the outcomes of ongoing policy adjustments.
“The MPC acknowledges continued stability in the foreign exchange market, which has been supported by stronger capital inflows, improved crude oil earnings, an uptick in non-oil exports, and robust investments,” Cardoso noted.
He emphasized that, most importantly, Nigerians themselves are starting to believe more in their local currency.
“Confidence in the naira is strengthening. The foreign exchange market is functioning more efficiently and attracting increased inflows,” he said.
Reform Measures Reshaping the Economy
Cardoso credited the shift in sentiment partly to the removal of fuel subsidies and the adoption of tough yet necessary economic measures.
“These reforms, though difficult, have helped stabilize the foreign exchange market and boosted Nigeria’s trade surplus. Investor confidence is on the rise,” he added.
CBN Maintains Focus on Curbing Inflation
As part of its ongoing disinflationary efforts, the CBN has retained the Monetary Policy Rate (MPR) at 27.5%, marking the third time in 2025 that the rate has remained unchanged.
Cardoso reiterated the apex bank’s commitment to price stability and inflation control, with Nigeria’s headline inflation currently at 22.22%.
“Holding the MPR steady is a deliberate move to sustain disinflation momentum and keep inflationary pressures in check,” he explained.
Key Resolutions from the 301st MPC Meeting:
- Monetary Policy Rate (MPR): Retained at 27.5%
- Asymmetric Corridor: Maintained at +500/-100 basis points
- Cash Reserve Ratio (CRR): 50% for Deposit Money Banks; 16% for Merchant Banks
- Liquidity Ratio: Held constant at 30%
All 12 MPC members voted unanimously to maintain these rates, underscoring a unified policy stance amid persistent inflation and exchange rate volatility.
Optimism for Naira’s Future Value
Following the previous 300th MPC meeting, committee member Murtala Sagagi projected that the naira could strengthen to N1,450 per US dollar by the end of 2025, supported by positive economic outlooks from major financial rating agencies like JP Morgan and Fitch Ratings.
These ratings, Sagagi noted, signal growing global confidence in Nigeria’s economic trajectory and reinforce expectations of improved currency performance.
