BY NGOZI ONYEAKUSI

CBN Governor, Cardoso

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to bringing inflation down to single digits, with Governor Olayemi Cardoso saying the bank’s tight monetary policy stance will remain in place despite a recent adjustment to its benchmark interest rate.

Cardoso said the decision to lower the Monetary Policy Rate (MPR) to 23 per cent was aimed at restoring the effectiveness of monetary policy transmission rather than signalling a conventional easing of policy.
He spoke at an investor engagement on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand.

The CBN had reduced the MPR by 350 basis points from 26.5 per cent at its latest Monetary Policy Committee (MPC) meeting.
Explaining the rationale, Cardoso said market interest rates had dropped below the benchmark rate, creating a disconnect that limited the ability of monetary policy to influence financial market conditions.
He said the adjustment was intended to address the disparity and ensure the benchmark rate could better guide borrowing costs and economic activity.
According to the governor, the improved performance of the money market following the bank’s policy measures created the conditions for the realignment.

Cardoso cautioned against interpreting the decision as a shift away from the CBN’s commitment to price stability, stressing that reducing inflation to single-digit levels remained a key objective.

However, he acknowledged that the timeline for achieving the target could not be determined with certainty.
Responding to a question on when inflation would fall to single digits, he said the outcome remained uncertain.

“The answer is we don’t know,” he said.
Clarify the MPR reduction timeline
Tighten the repeated inflation references
Strengthen the lead with the uncertainty