The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has lauded the Monetary Policy Department (MPD) for its significant contributions to the bank’s achievements over the years.
Cardoso spoke on Tuesday in Abuja during the MPD’s 20th Anniversary Colloquium, themed “Monetary Policy in Nigeria: Past, Present and Future”. He was represented by CBN’s Deputy Governor, Economic Policy Department, Dr. Mohammed Abdullai.
He highlighted that the MPD has consistently provided robust technical support to key committees, including the Monetary Policy Committee and the Monetary Policy Technical Committee, and has assisted the CBN board in ensuring coherence in policy deliberations.
“The Department’s efforts have contributed to several landmark achievements, including the introduction of the Monetary Policy Rate (MPR), which replaced the minimum rediscount rate in 2006, enhancing clarity and effectiveness of policy coordination,” Cardoso said.
He noted the department’s role in adopting the Interest Rate Corridor Approach, which established bounds around the MPR to guide short-term interest rates and improve liquidity management. The MPD has also strengthened evidence-based monetary policy analysis and improved the CBN’s policy communication strategies.
Cardoso observed that the past two years have been transformative for the Nigerian economy, driven by bold reforms and decisive actions that have restored confidence and laid the foundation for long-term stability. He cited a reduction in inflation to 16 per cent as of October from a peak of 34.6 per cent in November 2024, marking seven consecutive months of disinflation, alongside stabilization and strengthening of the Naira.
Dr. Victor Oboh, Director of MPD, described the department as synonymous with intellectual rigor, strategic foresight, and commitment to the CBN’s core mandate. He thanked Governor Cardoso for his exemplary leadership and support, which have been instrumental in shaping the department’s strategic direction.
Oboh noted the MPD’s key role in introducing the monetary policy range in 2006, strengthening the policy communication framework, and guiding Nigeria’s transition from direct to market-based monetary policy. He also emphasized the department’s resilience during challenging periods, including the global financial crisis, commodity price shocks, and the COVID-19 pandemic, underscoring its enduring impact on Nigeria’s economic stability.
