Market News

BY Onyinye Nwachukwu 

…upbeat about positive inflation outlook

Confidence in the naira is growing among Nigerians, reflecting renewed optimism over the Central Bank of Nigeria’s ongoing reforms and improvements in macroeconomic stability, Olayemi Cardoso, CBN Governor said Tuesday.

He was speaking at a post-Monetary Policy Committee (MPC) press briefing in Abuja where he announced the decision of the Monetary Policy Committe (MPC) to hold all benchmark leding parameters steady for the third straight time, to allow to allow inflation cool further.

All the 12 MPC members voted to hold the MPR at 27.5%, maintain the asymmetric corridor at +500/-100 basis points, retain the Cash Reserve Ratio at 50% for deposit money banks and 16% for merchant banks, and keep the liquidity ratio at 30%.

Cardoso said the CBN’s policy actions—including a market-driven foreign exchange system and tighter monetary conditions—are beginning to deliver meaningful results. One of the clearest signals, he noted, is a growing willingness by Nigerians to use the local currency in transactions traditionally reserved for foreign currencies.

“Very importantly, Nigerians are having greater confidence in their own currency. I was quite struck in having a discussion with somebody just yesterday… the travel agent said, ‘Please, I know you normally give me my money in dollars, but I’m very happy to take it in Naira.’ Those are the things that are happening across the board,” he said.

The CBN governor emphasised that the narrowing spread between official and parallel exchange rates, as well as increased access to Naira-denominated payment instruments abroad, were structural changes—not temporary interventions. “A lot of what you see going on now is transformational. And they are here to stay. Some of the banks are now allowing you to use your Naira cards when you travel. Those things are here to stay. They are not a short-term measure,” he added.

Cardoso pointed to improved sentiment among global rating agencies and development partners, including the International Monetary Fund and Moody’s, which recently upgraded Nigeria’s outlook. He said such endorsements reinforce confidence among investors and reflect alignment around the country’s current policy trajectory. “Potential investors take a cue from the IMF and other institutions… The Nigerian authorities have taken bold transformative measures to properly reposition the macroeconomic fundamentals of the country.”