The Centre for the Promotion of Private Enterprise has assessed the performance of the Central Bank of Nigeria under the leadership of Governor Olayemi Cardoso over the past two years. According to the economic think tank, notable achievements include stability in the naira, gains in the foreign exchange market, and a decline in inflation.
The director of the Centre, Muda Yusuf, outlined these accomplishments in a statement, highlighting the comprehensive reforms undertaken by the Central Bank to restore confidence, strengthen governance, and reposition the financial system for inclusive and sustainable economic growth. One of the most significant reforms has been the liberalization and unification of the foreign exchange market, which has led to increased transparency and credibility, boosted liquidity, enhanced institutional capacity, and strengthened financial stability.
The unification of the foreign exchange market has eliminated multiple exchange rate windows, reducing opportunities for arbitrage and corruption. This move has improved price discovery, allowing for a more efficient allocation of foreign exchange resources. Additionally, the Central Bank’s monetary policy tools, including interest rate adjustments and liquidity management, have contributed to the recent decline in inflation and the restoration of macroeconomic stability.
However, the Centre has urged the Central Bank to consider easing its monetary policy rate and cash reserve ratio to balance price stability with economic growth. This would involve gradual easing and calibration of these rates downward as inflation moderates, creating a more enabling credit environment. The Centre also recommends complementing monetary tightening with supply-side measures to address structural drivers of inflation.
In the context of Governor Cardoso’s appointment by President Bola Ahmed Tinubu in September 2023, the Central Bank has made significant strides in the past two years. Notably, interest rates have decreased from 26.72 percent to 21.12 percent as of August 2025. Meanwhile, the foreign exchange rate has risen from around N788 per dollar in September 2023 to N1,487.90 as of September 2025, largely due to the liberalization of the currency.
The Centre’s assessment underscores the importance of the Central Bank’s reforms in achieving economic stability and promoting growth. As the economic landscape continues to evolve, the Central Bank’s policies will remain crucial in navigating the challenges and opportunities ahead. The Centre’s recommendations, if implemented, could further support the country’s economic development and strengthen its financial system.
