Nigerians Regain Confidence in the Naira, Says CBN Governor

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has affirmed that Nigerians are beginning to regain confidence in the naira, following a series of aggressive monetary policy reforms implemented over the past year.

Speaking at a press briefing after the 297th Monetary Policy Committee (MPC) meeting held in Abuja, Cardoso revealed that the Central Bank had raised the Monetary Policy Rate (MPR) significantly—from 18.75% in September 2023 to 27.25% by late 2024—in a bid to tackle excess liquidity in the financial system and restore stability to the national currency.

“These interest rate hikes were necessary steps to rein in inflationary pressures and discourage speculation in the foreign exchange market,” the CBN governor stated. “The results are becoming evident. Nigerians now have greater confidence in the naira.”

The CBN has also introduced a suite of foreign exchange reforms aimed at closing the gap between the official and parallel market rates, which had previously undermined faith in the domestic currency. This includes liberalising the FX market and enhancing transparency in foreign exchange allocations.

At the Monetary Policy Forum held in January 2025, also in Abuja, Governor Cardoso reiterated the CBN’s commitment to pursuing orthodox monetary policies. He noted that ongoing exchange rate stability, tightening of monetary conditions, and a steady rise in Nigeria’s external reserves have all contributed to the naira’s gradual reversion to what he described as its “true market value.”

“Our policies are working. Investor sentiment is shifting, and the naira is stabilizing,” he said, adding that rebuilding public trust in the financial system remains a core priority of the apex bank.

The statement comes amid cautious optimism in financial circles, with analysts pointing to improved FX liquidity and declining speculative demand for the dollar as signs that the naira may be entering a more stable phase after years of volatility.